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 marks a significant event for Huobi founder
About Capital Management, a Hong Kong-based asset management company, recently became the largest shareholder in crypto exchange Huobi, acquiring founder Lee Lin’s stake in the firm. The acquisition of the Asian crypto exchange by a “secret” asset management firm has put an end to rumors that suggest that Sam Bankman-Fried’s FTX, Binance and Justin Sun were interested in, 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. I’m sorry if you are disappointed,” 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 Capital Management paid for Lin’s shares, some market rumors suggest the acquisition deal is worth around $3 billion.
