Li Lin’s controlling stake in Huobi, one of Asia’s largest cryptocurrency exchanges, was recently acquired by About Capital Management for an undisclosed sum. Huobi’s acquisition by the Hong Kong-based asset management firm came shortly after the crypto exchange had exited the Chinese market.
Lin’s Arrest in 2020 a Key Event for the Huobi Founder
The Hong Kong-based asset management company, About Capital Management, recently became the biggest shareholder in the crypto exchange Huobi after it acquired founder Li Lin’s stake in the firm. The Asian crypto exchange’s acquisition by the “secretive” asset management firm has put an end to rumors suggesting that Sam Bankman-Fried’s FTX, Binance, and Justin Sun were interested in buying, or had already bought, Huobi.
According to a Wublockchain report, following his arrest in 2020 by local law enforcement, Lin hinted he wanted to quit the Chinese market.
“Without Huobi, everyone still has Binance and Okx. If you are disappointed, I’m sorry,” Lin reportedly said in a post shared via Wechat.
Huobi Encountered More Problems After Exiting the Chinese Market
After initially blocking Chinese residents from the platform in 2021, Huobi — which has licenses to operate in the United States, Hong Kong, South Korea, and Japan — proceeded to exit its biggest market in 2022. Nevertheless, the troubles that the crypto exchange encountered after it exited the Chinese market may have forced Lin to consider leaving the crypto exchange business completely, the report concluded.
While there has been no official confirmation of the amount that About Capital Management paid for Lin’s shares, some market rumors suggest the acquisition deal is worth approximately $3 billion.