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

Justin Sun rejected Calling it an April Fool’s joke, it reported rumors that it was negotiating to sell its stake in the cryptocurrency exchange Huobi Global.

Sun said:

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

rumors of a sale

The Sun tweeted in response to Bloomberg news report On April 1, it claimed that Tron’s founders were looking to sell their unlisted shares in Huobi Global to “raise capital.”

The report cites “a person with direct knowledge of the matter” who wanted to keep it confidential because of the confidentiality of the information.

The source told the media outlet that Sun had been looking for a potential buyer for several days but did not name the potential buyer or provide details of the discussions.

The cryptocurrency community is divided on the issue, with some taking Sun at his word and others pointing out that the CEX CEO made similar comments before the company collapsed.

Relationship between Sun and Huobi

Hong Kong-based About Capital Management acquired a 60% majority stake in Huobi Global in October 2022 for approximately $1 billion. Many speculate that Sun was behind the deal due to its ties to the previous company.

However, Son denied the speculation at the time, claiming he was simply acting as an advisor to the exchange.

In the months that followed, Sun used hundreds of millions of dollars in personal funds to help the exchange through tough times, but made claims that suggested he owned control of the exchange. I steadfastly denied it.

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

However, recent indictments filed against Sun by the US SEC have raised concerns about the exchange’s licensing process, and many expect legal issues to have a negative impact.

SEC fee

The SEC has indicted Sun for fraud and selling unregistered securities.

Regulators claim that both TRON and BitTorrent cryptocurrencies are securities, and Sun, along with wholly-owned companies, sold these assets in the United States without the proper permits.

The SEC also accused Sun and the TRON Foundation of counterfeiting trading activity for both tokens and using celebrities to advertise to unsuspecting investors.

Sun has publicly denied the allegations and accused the SEC of an unclear regulatory environment. He said the indictment “has no merit”.