Crypto exchange Li De Huobi will sell its entire stake to a buyout company

Crypto exchange Li De Huobi will sell its entire stake to a buyout company

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Oct 8 (Reuters) – Cryptocurrency exchange Huobi Global said its founder has agreed to sell his majority stake in the China-based company to buyout firm About Capital Management (HK) Co.

After the transaction closes, the acquisition company About Capital will control the majority stake of Huobi founder Leon Li, Huobi said in a statement on Friday.

The transaction only involves a change of majority shareholder and has no impact on Huobi’s core operations and business management team, the company said.

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The cryptocurrency industry has seen a sharp decline this year amid broader risk-on sentiment in markets due to geopolitical unrest, aggressive monetary tightening and decades-high inflation.

Li was exploring the possibility of selling his nearly 60 percent stake, people familiar with the matter told Reuters in August. This month, the chief executive of rival FTX, Sam Bankman-Fried, said he had no intention of buying Huobi.

Huobi left China in December last year and closed all user accounts in mainland China.

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Reporting by Shubhendu Deshmukh in Bengaluru; Editing by William Mallard

Our standards: The Thomson Reuters Trust Principles.

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