The cryptocurrency exchange landscape witnessed a significant shift in October 2022 when Huobi Global announced the completion of its equity transfer. About Capital Management, a Hong Kong-based fund, became the controlling shareholder, marking the end of an era for founder Li Lin and sparking widespread speculation about the future direction of the platform.
This transition follows Huobi's earlier exit from the Chinese mainland market and represents a pivotal moment in its nine-year history. The move has generated considerable discussion regarding the true nature of the acquisition and the potential influence of prominent industry figures in Huobi's next chapter.
The Acquisition and Ownership Transition
On October 8, 2022, Huobi Global officially announced that its controlling shareholder had transferred all equity to a fund under About Capital Management. This transaction established the Hong Kong-based asset management firm as Huobi Global's largest shareholder and controlling entity, valued at over one billion dollars.
Founder Li Lin subsequently confirmed his complete departure from the company he established nearly a decade earlier. In a social media post, he clarified that he no longer held any shareholder status, controlling interest, or operational permissions within Huobi Global. His departure symbolized the conclusion of a significant chapter in cryptocurrency exchange history.
About Capital Management's Background
The new controlling entity, About Capital Management, represents a traditional finance firm making its first significant foray into the cryptocurrency sector. The Hong Kong-based fund specializes in mergers and acquisitions, though its previous investments had primarily focused on conventional financial markets rather than digital assets.
This transition to a traditionally-focused investment firm taking control of a major cryptocurrency exchange generated significant interest within the digital asset community regarding their strategic vision for Huobi's future development.
Justin Sun's Controversial Role
Despite official statements from Tron's Chinese operations team denying involvement, multiple reports indicated that Tron founder Justin Sun served as the core investor behind About Capital's acquisition fund. Industry insiders reported that Sun was present at the signing ceremony in Singapore on October 8th, further fueling speculation about his actual level of involvement.
Contradicting these reports, Tron's official Chinese operational team stated that neither Justin Sun nor Tron participated directly in the Huobi acquisition. They did confirm, however, that Sun had accepted a position on Huobi Global's newly established Global Advisory Board.
Leadership Presence and Strategic Direction
Shortly after the acquisition, Justin Sun appeared at an all-hands meeting of Huobi Global employees in his capacity as a member of the Advisory Committee. During his address, he outlined strategic priorities that would focus on enhancing the value of Huobi's native token HT rather than introducing a new token.
"Huobi Global will undergo a series of brand upgrades and initiatives, but all will center around HT," Sun stated during the meeting. "We will not issue a new token but instead focus on empowering HT, giving Huobi supporters more motivation. HT's appreciation will not merely result from market manipulation but will reflect user confidence in the brand."
Supporting the speculation about his deepened involvement, Justin Sun changed the link in his Twitter bio to direct followers to Huobi Global's official website shortly after the acquisition announcement.
Other industry figures were quick to distance themselves from the transaction. FTX founder and CEO Sam Bankman-Fried (SBF) publicly denied rumors that he had provided financial assistance to Justin Sun for the acquisition, stating unequivocally that he "was never involved" in the process.
Huobi's Exit from the Chinese Mainland Market
The acquisition represents the latest development in Huobi's ongoing transformation, which began with its exit from the Chinese mainland market in late 2021. This strategic withdrawal formed part of a broader industry response to regulatory changes in the region.
The Gradual Withdrawal Process
In September 2021, Huobi Global ceased new user registrations from mainland China, removing the option from its registration page and retaining only Taiwan and Hong Kong as available Chinese regions. The exchange announced plans to gradually phase out existing mainland users while ensuring the security of user assets throughout the process.
By December 15, 2021, Huobi had prohibited cryptocurrency trading for mainland Chinese users, followed by the removal of over-the-counter Chinese Yuan (CNY) trading pairs on December 31, 2021. This systematic approach reflected the exchange's commitment to compliant operations while minimizing disruption to users.
Organizational Impact
The strategic shift necessitated organizational changes, including the departure of key executives. Chief Operating Officer Robin Zhu left the company in October 2021, part of the restructuring following Huobi's market exit.
The financial impact was substantial. In a February 2022 interview with CNBC, Du Jun, then a senior executive at Huobi, revealed that exiting the Chinese mainland market had cost the exchange approximately 30% of its revenue. This financial setback prompted strategic planning for expansion into other markets, including the United States.
The Future of Huobi Global
The acquisition and subsequent leadership changes signal a new era for Huobi Global, one that blends traditional finance expertise with cryptocurrency innovation. The exchange's future strategy appears focused on strengthening its native token while expanding into new geographical markets.
The involvement of high-profile industry figures in an advisory capacity suggests that Huobi will remain a significant player in the global cryptocurrency exchange landscape, though under substantially different leadership and ownership than during its foundational years.
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Frequently Asked Questions
Who acquired Huobi Global?
About Capital Management, a Hong Kong-based investment fund, became Huobi Global's controlling shareholder in October 2022. The fund acquired all equity from previous controlling shareholders, though speculation persists about other investors involved in the acquisition process.
What was Justin Sun's role in the acquisition?
While Tron's official channels denied direct involvement, multiple reports identified Justin Sun as a core investor in the acquisition fund. Sun has since joined Huobi's Global Advisory Committee and has been actively involved in strategic planning.
How did Huobi's exit from China affect the exchange?
The gradual withdrawal from the Chinese mainland market, completed in December 2021, resulted in an estimated 30% revenue reduction. This prompted strategic shifts toward other markets, including planned expansion into the United States.
What changes can users expect under new ownership?
Leadership has committed to enhancing the value and utility of Huobi's native HT token rather than launching a new token. The exchange plans brand upgrades and initiatives focused on strengthening HT's ecosystem and value proposition.
Did FTX or Sam Bankman-Fried participate in the acquisition?
FTX founder Sam Bankman-Fried explicitly denied involvement in the acquisition, stating that he and his exchange "were never involved" in the process despite market rumors to the contrary.
What is Huobi's current relationship to its founder?
Li Lin, Huobi's founder, has confirmed he no longer holds any ownership stake, controlling interest, or operational permissions within the exchange following the completion of the equity transfer.