Justin Sun calls media reports about Huobi stake sale ‘April fools prank’


CoinDesk Consensus

Justin Sun denied reported rumors about him being in talks to sell a stake in crypto exchange Huobi Global — calling them an April Fool’s joke.

Sun said:

“Rest assured, Huobi is committed to providing our users with a safe, reliable, and innovative platform for trading and investing in cryptocurrency.”

Rumors of sale

Sun tweeted in response to a 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 wished to remain confidential due to the sensitive nature of the information.

The source told the news outlet that Sun had been looking for potential buyers for several days but did not name any potential buyers or divulge any details of the discussions.

The crypto community is split on the matter, with some taking Sun at his word and others pointing out that CEOs of CEXs had made similar comments before their firms collapsed.

Sun’s relationship with Huobi

Hong Kong-based About Capital Management acquired a majority 60% stake in Huobi Global for roughly $1 billion in October 2022 — with many speculating that Sun was behind the deal due to his links to the former company.

However, Sun denied the speculation then and claimed he was simply serving as an advisor for the exchange.

In the ensuing months, Sun spent hundreds of millions of dollars of his personal money to help the exchange through tough times but continued to adamantly deny any claims implying he owned a controlling stake in the exchange.

Additionally, Sun has made several important announcements for the exchange, including its decision to apply for a VASP license in Hong Kong in February.

However, recent charges levied against Sun by the U.S. SEC have raised concerns over the exchange’s license process, with many expecting the legal troubles to have an adverse impact.

SEC charges

The SEC has levied charges of fraud and selling unregistered securities against Sun.

The regulator claims that both the TRON and BitTorrent cryptocurrencies are securities, and Sun, along with his wholly-owned companies, sold these assets without proper authorization in the U.S.

The SEC also accused Sun and the TRON foundation of faking trading activity for both 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 hold “no merit.”

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