Justin Sun denied reported rumors that he was in talks to sell a stake in crypto exchange Huobi Global – calling them an April Fool’s joke.
“Rest assured, Huobi is committed to providing our users with a safe, reliable and innovative platform for trading and investing in cryptocurrency.”
Sun tweeted in response to Bloomberg News report on April 1, claiming that the Tron founder was looking to sell an undisclosed stake in Huobi Global to “raise funds.”
The report cited a “person with direct knowledge of the matter” who wanted to remain confidential due to the sensitive nature of the information.
The source told the outlet that Sun had been looking for potential buyers for several days, but did not name any potential buyers or disclose any details of the talks.
The crypto community is divided on the issue, with some taking Sun at his word and others pointing out that CEX CEOs made similar comments before their companies collapsed.
Sun’s relationship with Huobi
Hong Kong-based About Capital Management acquired a 60% majority stake in Huobi Global for around $1 billion in October 2022 – with many speculating Sun was behind the deal due to its ties to the old society.
However, Sun then denied the speculation and claimed that he was simply serving as an adviser for the exchange.
In the months that followed, Sun spent hundreds of millions of dollars of his own money to help the exchange through difficult times, but continued to categorically deny any claims that he held a majority stake in the exchange. ‘exchange.
Additionally, Sun made several important announcements for the exchange, including its decision to apply for a VASP license in Hong Kong in February.
However, recent charges against Sun from the US SEC have raised concerns about the exchange’s licensing process, with many expecting the legal issues to have a negative impact.
The SEC has filed charges of fraud and selling unregistered securities against Sun.
The regulator claims that the TRON and BitTorrent cryptocurrencies are securities, and Sun, along with its wholly-owned companies, sold these assets without proper authorization in the United States.
The SEC also accused Sun and the TRON foundation of faking trading activity for the two tokens and using celebrities to promote them to unsuspecting investors.
Sun has publicly denied the allegations and denounced the SEC for an unclear regulatory environment. He said the charges had “no basis”.