Exclusive: Huobi founder Li Lin resumes normal work. How is Huobi doing in this “extraordinary period”?

Multiple sources confirmed to "Wu Says Blockchain" that Huobi founder Li Lin returned to the company and started working normally on March 9, 2021. On February 23, 2021, "Wu Says Blockchain" learned that Huobi COO Zhu Jiawei also resumed normal work last week. So far, Huobi's crisis has come to an end.

On the evening of November 2, 2020, Huobi HT suddenly plummeted, and then the market reported that Huobi's second-in-command, COO Zhu Jiawei, was under investigation. Zhu Jiawei did not actually manage much business, but played more of a "political commissar" role. Multiple sources told Wu Blockchain that Zhu Jiawei was cooperating with Shanxi's investigation into a certain incident.

In mid-October 2020, OK founder Xu Mingxing was investigated and placed under residential surveillance. According to Mars Finance, which is invested by OK and Huobi, the real reason why Xu Mingxing was taken away to assist in the investigation on October 16 may be related to the backdoor listing of OK Group in Hong Kong last year. At that time, a sum of money for the shell purchase was borrowed from an underground bank in Shanxi, and the bank has now been filed for investigation by the police. It is also rumored that the reason Huobi was investigated was related to the shell purchase.

However, Huobi’s former CFO Li Shufei later said in his WeChat Moments: I hope everyone can do their own job in the current atmosphere and not cause trouble for others. Some people are also speculating about the shell purchase, saying OK’s shell and Huobi’s shell. OK’s shell was not executed by me. Huobi’s shell transactions are all compliant channels and are carried out in accordance with the Hong Kong Stock Exchange regulations. There is no non-compliance.

On November 18, 2020, OKB suddenly rose against the trend. Multiple sources told Wu Blockchain that Xu Mingxing had been given some freedom and resumed work. On November 20, OK founder Xu Mingxing personally posted a response to the recent turmoil on his WeChat Moments.

1. Our company completed an equity merger and acquisition transaction a few years ago. Since the acquired party was involved in a complex legal case, I was asked to cooperate with the investigation.

2. At present, the judicial authorities have ascertained the facts and cleared my name.

3. With regard to the malicious slander and personal attacks against me by certain people in the media and on the Internet, I will communicate and explain in a kind manner and clarify the facts, but I will reserve the right to take legal action.

4. I would like to thank the judicial organs for handling the case fairly, efficiently and professionally, which has brought the truth to light and made me feel fairness and justice. Thank you again for your concern and continued support.

Huobi has not responded to the relevant information under investigation so far.

When the top two leaders were absent, Du Jun, who was based in Singapore, took on the daily operations and work of the HECO ecosystem despite not being favored in the early stages. He did not stop withdrawing coins, and the overall business maintained smooth operation.

At the beginning of the extraordinary period, there was a crazy transfer of Bitcoin stocks from Huobi to Binance, but HECO successfully stabilized the situation. The price of HT has risen by about 4 times since the incident. HECO has triggered widespread discussion and brought huge traffic, but there are also problems with regulatory boundaries and retail complaints. However, the industry generally believes that Du Jun is of great significance to Huobi during this extraordinary period.

Another good news is that Huobi Technology, the listed company of Huobi, has just obtained the upgraded version of Hong Kong No. 4 and No. 9 licenses, and has issued Bitcoin tracking funds, Ethereum tracking funds and multi-strategy virtual funds without the 10% limit. This move is of great significance. The outside world believes that it may become the hope of Grayscale in Asia, and Huobi has truly taken an important step towards compliance.

During this extraordinary period of four months, Huobi also had its chief investment officer resign, two severe downtime incidents, and just recently received a warning from the FSA of Seychelles, where it is registered (Huobi said that it has been revoked after communication). How will Huobi adjust after Li Lin's return? Wu said that blockchain will continue to pay attention.