Huobi, a Singapore-based exchange, said Thursday that Justin Sun, the creator and CEO of Tron and one of the affluent persons in crypto, is not only a member of the Global Advisory Board but also the exchange’s CEO.
“Under the leadership of Justin Sun, it can be said that Huobi has embarked on the path to rebirth,” provided by the blogpost.
Justin joined the Global Advisory Board in October, soon after Hong Kong-based investment firm, About Capital Management, acquired a controlling share in Huobi. Although it had not been previously established that Sun was in command of the exchange.
The timing has spurred industry speculation that Sun is a shadow investor in About Capital, although Sun spokespeople have assured CoinDesk that he is not an owner of the firm. However, Sun has admitted to owning tens of millions of Huobi’s HT tokens.
Huobi has recently been under fire on multiple fronts, including how it managed its 1,600 layoffs in January.
What is Rat Trading?
According to Masscation, rat trading mostly refers to a public fund that is first operated by a few individuals, often investment directors, fund managers, and so on. These individuals utilize personal funds to purchase a stock at a low price, then use public funds to boost the stock price, and then sell it at a high price for a personal account to benefit.
“Several accounts that were frozen for their abnormal behavior are characterized by their lack of trade at normal times,” according to the statement. “However, these accounts have been trading Huobi’s new tokens and ecology tokens frequently, while transferring assets in and out quickly. As investigations have shown, these accounts have made abnormal levels of profits many times, and the profits were quickly withdrawn. These are clearly the traits of rat trading.”
Huobi said it has “zero tolerance for rat trading.”
“Under the new management, Huobi will continue to conduct in-depth audits, hold responsible people accountable and publicize information in due time,” according to the statement. “A resolute and consistent crackdown on rat trading demonstrates Huobi’s commitment to protecting the interest of its employees and users.”
