On Saturday, Tron Network founder Justin Sun dismissed rumors that he planned to sell his stake in Houbi Global, a crypto exchange. He called the Bloomberg News report an “April fool’s joke.” According to the media house, Sun was looking to sell an unknown amount of his shares to raise funds.
Bloomberg News claimed it was informed about the Tron founder’s plans by “a person familiar with the matter.” The source alleged that Sun had been seeking potential purchasers for weeks but did not mention the names of those buyers, citing the sensitive nature of that information.
Meanwhile, the crypto community is divided in regard to the matter. Some believe Sun is telling the truth, while others don’t, arguing that several CEOs of centralized exchanges had previously made similar comments days before their companies went crumbling down.
Sun’s Relationship With Huobi Global
Last October, a Hong Kong-based company called About Capital Management bought a majority stake in Houbi Global, estimated to be worth $1 billion. Many speculated that the Tron founder was behind the deal since he was previously associated with the firm.
Sun, however, quashed the speculations, claiming he was only acting as the exchange’s advisor. In the following months, he spent his personal funds to help Houbi Global stay afloat during the harsh economic times while denying any claim implying he had a majority stake in the exchange.
In addition, Huobi Global’s important announcements were being made by Sun, including the firm’s decision to initiate the process of applying for a VASP license in Hong Kong. But recent charges that the US Securities and Exchange Commission (SEC) has brought against Sun could significantly affect the licensing process if, indeed, he owns a majority stake in the exchange.
The SEC Charges
The Commission accuses Sun of offering unlicensed securities. According to the regulator, both BitTorrent and TRON tokens are securities, which Sun and his firms sold in the United States without proper registration.
The SEC has also alleged that Sun manipulated the market of the two tokens and used celebrities to market them to innocent investors.
Meanwhile, Sun has rubbished the SEC allegations and called out the agency for an unclear regulatory framework.