Sam Bankman-Fried: No, FTX is Not Acquiring Huobi

Despite its shopping spree for crypto firms earlier in the year, FTX will not pick up Seychelles-based Huobi, Sam Bankman-Fried has said

article-image

FTX’s Sam Bankman-Fried | Blockworks exclusive art by axel rangel

share

key takeaways

  • Huobi Group founder Leon Li was reportedly looking to offload his majority stake for more than $1 billion
  • FTX CEO Sam Bankman-Fried and Tron founder Justin Sun were said to have held preliminary talks

Sam Bankman-Fried has dispelled rumors of his crypto exchange FTX acquiring rival Huobi, after reports surfaced earlier this month indicating preliminary talks had taken place.

“Just to be explicit because apparently a lot of people are saying this: No, we are not planning to acquire Huobi,” Bankman-Fried, FTX’s CEO, tweeted on Monday.

Bloomberg earlier this month reported that Huobi Group founder Leon Li had sought to offload his majority stake for more than $1 billion, which would value the exchange at $3 billion.

Preliminary talks reportedly took place between Huobi and FTX billionaire Bankman-Fried, as well as Tron founder Justin Sun, according to Bloomberg, which cited sources familiar with the matter.

Sun later denied his company would pursue an acquisition. “We have not engaged in any matters related to the Bloomberg story at this moment,” Sun tweeted, emphasizing he had not held any negotiations with Huobi Group founder Leon Li.

Li was reportedly seeking a 60% takeover bid of Seychelles-headquartered Huobi. If a buyer was found at its purported valuation, it would be one of the largest crypto deals of the year.

Huobi investors Sequoia China and Zhenfund were reportedly informed about the potential deal in a shareholders meeting last month.

In any case, industry participants have come to expect buyouts and takeover bids from FTX. The crypto derivatives and spot market exchange has scooped up businesses amid this year’s depressed market conditions.

FTX acquired Japan’s fintech firm Liquid Group for an undisclosed sum in February, Canadian crypto trading firm Bitvo in June, and initiated a complicated bailout of crypto lender BlockFi in July.

FTX also offered to acquire bankrupt lender Voyager, which later rebuffed the advance, labeling it a “low ball bid.”


Get the day’s top crypto news and insights delivered to your email every evening. Subscribe to Blockworks’ free newsletter now.


Want alpha sent directly to your inbox? Get degen trade ideas, governance updates, token performance, can’t-miss tweets and more from Blockworks Research’s Daily Debrief.


Can’t wait? Get our news the fastest way possible. Join us on Telegram and follow us on Google News.


Tags

upcoming event

MON - WED, MARCH 18 - 20, 2024

Digital Asset Summit (DAS) is returning March 2024. This year’s event will be held in our nation’s capital, where industry leaders, policymakers, and institutional experts will come together to discuss the latest developments and challenges in the ever-evolving world of cryptocurrency. […]

upcoming event

MON - WED, SEPT. 11 - 13, 2023

2022 was a meme.Skeptics danced, believers believed.Eventually, newcomers turned away, drained of liquidity and hope.Now, the tide is shifting and it’s time to rebuild. Permissionless II is the brainchild of Blockworks and Bankless. It’s not just a conference, but a call […]

recent research

Sequencers: The Key to The Rollup Investment Thesis

Research

Sequencers are one of the most explicit mechanisms in crypto for creating sustainable DAO-controlled revenue.

/

article-image

Yup’s Kabessa says “Twitter is our core competitor, rather than each other”

article-image

The Mantle testnet has been live since January and mainnet launch is estimated to occur sometime in July

article-image

Impending developments might “totally change” how Cosmos is experienced and perceived by the “broader crypto world”

article-image

Lawmakers set an optimistic tone on Wednesday, discussing room for crypto innovation in the supply chain, healthcare and national security

article-image

Binance faces 13 alleged US legal violations, while Coinbase faces just four

article-image

The SEC has seven days to respond to a court’s request for clarity on Coinbase’s lawsuit against the regulator