Sam Bankman-Fried Denies Intentions to Acquire Huobi

Key Takeaways:

  • Rumour has it that FTX has finished the deal.
  • According to SBF, they do not have any plans to buy Huobi.

Sam Bankman-Fried, CEO of SBF, claims that FTX, a prominent cryptocurrency exchange, will not buy a controlling stake in Huobi.

SBF clearly rejected a Bloomberg report that said FTX intended to acquire cryptocurrency exchange Huobi in a tweet on Monday. On August 12, UKTN reported that Huobi co-founder Leon Li is thinking about selling his controlling ownership in the business, which is worth more than $1 billion.

Under SBF’s direction, FTX and Alameda Research intervened a few times during the downturn market to save crypto businesses that were having liquidity problems. Bankman-Fried stated that both businesses had a responsibility to “seriously consider stepping in, even if it is at a loss to ourselves, to halt contagion” since it would be “good for the ecosystem” in a June interview with NPR.

Journalist Colin Wu claims that last week, all Huobi workers’ email addresses were switched from Huobi.com to the-inc.com.

Alameda presented Voyager Digital with a loan of $200 million in USD Coin (USDC) and a “revolving line of credit” of 15,000 Bitcoin (BTC), which at the time was valued about $300 million.

In addition, FTX provided BlockFi with a $250 million revolving credit facility. BlockFi claimed to have grown by almost 250,000% in 2022 while laying off 20% of its workforce.

The possibility that FTX, which has provided financial support to a number of struggling cryptocurrency businesses, including the exchange BlockFi and the lender Voyager Digital and may ultimately takeover both companies, had grown, was considering acquiring the Seychelles-based Huobi.

According to a mid-August Bloomberg article, FTX and Huobi founder Leon Li had initial discussions about FTX purchasing a controlling share in Huobi, which would value the company at $3 billion or more.

According to the article, a deal might be finalised by the end of this month, and Justin Sun, the creator of the Tron blockchain network, was also considering making a bid for the share. Sun denied having any desire to tweet.

Aadrika Sharma
Aadrika Sharma

I enjoy writing and try to learn new things every passing day!

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