CEO Bankman Fried Says FTX has No Plans to Acquire Chinas Huobi
Categories: Crypto News US
CEO Bankman-FriedSays FTX has No Plans to Acquire Chinas Huobi
FTX has beenactive in the acquisitions area this year, buying up startups like Liquid andBitvo despite the crypto winter. However, in a tweet sent out Mondaymorning by FTX Chief Executive Sam Bankman-Fried stated that the cryptoexchange had no intentions to acquire Huobi.
Huobi Globalis one of the world’s largest crypto exchanges where investors can quickly andconveniently purchase and trade Bitcoin, Ethereum, and other cryptos. Huobi hasa daily trading volume of more than $1 billion. Huobi was founded in 2013, andit is one of the first crypto exchanges, with a rising presence in Korea andHong Kong.
According toBloomberg News, a sale of Li’s nearly 60% share would value Huobi between $2billion and $3 billion and could be completed as soon as this month.Thisyear has seen major losses in the crypto business as a result of geopoliticalinstability, aggressive monetary, policy tightening, and decades-highvaluations.
Peoplefamiliar with the situation told Reuters earlier this month that Huobi founderLeon Li was considering selling a stake in the company.But following thepublication of that report, Bankman-Fried took to Twitter to quash the idea ofhis firm’s involvement.
FTX andHuobi
On August12, Bloomberg reported that FTX was among those that held preliminarydiscussions with Huobi about purchasing a 60% interest from the company’sfounder, Leon Li. According to the story, Tron creator Justin Sun wasinterested in the share.Sun stated that Tron was not involved in any mattersrelated to the Bloomberg story at themoment. On Monday afternoon trade, bitcoin (BTC-USD) was regaining the$20K Bankman level. Bitcoin dipped below the $20K mark early Monday afterJerome Powell’s hawkish speech in Jackson Hole put investors on the defensive.
In July, FTXUS provided a $400 million credit line to struggling crypto lender BlockFi aspart of a deal to acquire BlockFi. Later that month, Bankman-Fried said thathis company has “a few billion” dollars to invest in the bitcoin market.