Chinese crypto mogul and Huobi’s founder looks to sell $3B stake

Huobi Group’s founder Leon Li is in talks with a handful of investors to sell his majority stake in the crypto exchange at a valuation of nearly $3 billion, in what could be the industry’s most prominent takeover since a $2 trillion global crypto downturn began.

According to people aware of the matter, the Chinese crypto mogul had discussions with several financiers to sell a roughly 60% slice of the firm he founded nearly a decade ago. Justin Sam, founder of Tron, and crypto billionaire Sam Bankman-Fried’s FTX have had preliminary contact with Huobi about a share transfer.

The people said that existing backers, including Sequoia Capital and ZhenFund, were informed about Li’s decision during a July shareholders’ meeting. One person said that a deal could not be completed as soon as the end of this month. Li is seeking a valuation of between $2-$3 billion, meaning a sale could fetch upwards of $1 billion, the people related with the matter added.

A Huobi spokesperson confirmed Li’s engaging with several international institutions about the stake sale but declined to offer specifics. In an emailed statement, the spokesperson said Li hoped that the new shareholders would be more powerful and resourceful, value the Huobi brand, and invest more capital and energy in driving Huobi’s growth.