Huobi founder in talks to sell his stake in the exchange

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The founder of the Huobi crypto exchange, Leon Li, is selling 60% company shares. The head of the FTX cryptocurrency exchange and the founder of Tron are interested in purchasing a controlling stake in Huobi.

Leon Li is in talks with the groupinvestors as the entrepreneur seeks to sell his majority stake in the company for between $2 billion and $3 billion. FTX founder Sam Bankman-Fried and Tron founder Justin Sun are among the investors who have held preliminary talks with Lee.

Huobi's existing investors, includingZhenFund and Sequoia China were informed of Li's intentions during a shareholder meeting in July. According to people familiar with the situation, Li hopes the new shareholders will be more powerful and resourceful, value the Huobi brand, and invest more in the company's development.

Huobi is one of the largest exchanges in the worldwith a trading volume of over $1 billion in the last 24 hours. The exchange's own HT token jumped from $4.45 to $5.56 – a price increase of more than 19%. According to experts, Huobi has every chance of becoming the second largest crypto exchange after Binance - it has many compliance licenses in dozens of jurisdictions.

However, during a market recession, sellholding a large stake in a company for more than market value can be difficult. Previously, a subsidiary of Huobi received financial approval from the US Financial Crimes Enforcement Agency (FinCEN).