(Reuters) – Cryptocurrency exchange Huobi Global said its founder had agreed to sell his controlling stake in the China-based company to buyout firm About Capital Management (HK) Co.
Upon completion of the transaction, the buyout vehicle of About Capital will control the majority stake of Huobi founder Leon Li, Huobi said in a statement on Friday.
The transaction involves only the change of controlling shareholder and has no impact on Huobi’s core operation and business management team, the company said.
The cryptocurrency industry has seen sharp declines this year amid a broader risk-off sentiment in the markets due to geopolitical turmoil, aggressive monetary policy tightening and decades-high inflation.
Li was exploring the sale of his almost 60 per cent stake, people familiar with the matter had told Reuters in August. That month competitor FTX’s CEO Sam Bankman-Fried said that he had no plan to buy Huobi.
Huobi exited from China in December last year and closed off all mainland China user accounts.