Due To The Crackdown In China, Huobi Global May Reduce Its Workforce By More Than 30%

FTX’s CEO Denies Rumors of an Interest in Huobi Global

  • Huobi exchange has seen a decline in its revenue since being forced out of China in 2021.

Popular crypto billionaire Sam Bankman-Fried has denied rumours linking him with the purchase of crypto exchange Huobi Global. According to Sam, FTX will not be acquiring a major stake in Huobi, as reported some weeks ago.

Previous reports claimed that Huobi co-founder Leon Li was open to selling his majority stake, valued at more than $1 billion. But a tweet shared by the FTX CEO has dismissed such rumours. Sam wrote on Twitter,

Just to be explicit because apparently a lot of people are saying this: No, we are not planning to acquire Huobi.

There were reports that an agreement between Li and potential buyers could be reached before the end of this month, with sources confirming that Huobi had held talks with Justin Sun and Sam. However, both Sun and Sam have denied rumours of a purchase.

Huobi Global was one of the standout crypto exchanges of the bull run. Founded in 2013, the trading platform was forced out of China following a crackdown on crypto activities in the country. Leaving China, its biggest market, led to a sharp drop in Huobi’s revenue, and the exchange announced plans to cut down its workforce.

According to reports, the change in the company’s fortune was a key reason why Huobi’s CEO considered selling 60% of his stake. A Huobi spokesperson told Bloomberg that the company planned to sell to new shareholders who would invest and boost its brand. Many believed that FTX‘s CEO was the right man for the job.

Sam Bankman-Fried has built a reputation for bailing out troubled crypto firms. The crypto billionaire established himself as the sector’s lender of last resort by stating plans to “stem contagion” from falling cryptocurrency prices and the bankruptcy of hedge fund Three Arrows Capital, which suffered losses following the crash in May. In a tweet he shared in June, Sam wrote.

We want to help those we can in the ecosystem, and have no interest in hurting them — that just hurts us and the whole ecosystem.

Despite the decline in market activity, FTX has announced plans to purchase more firms and expand into new territories. The trading firm revealed plans to buy crypto exchange Bitvo in July as part of its foray into the Canadian market. However, FTX has become a company of interest to regulators who are allegedly monitoring its activities.

Lawrence Woriji Verified

Lawrence has covered some exciting stories in his career as a journalist, he finds blockchain-related stories very intriguing. He believes Web3 will change the world and wants everyone to be a part of it.

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