Summary:
- According to Malaysia’s Securities Commission, Huobi Global is not a registered business and must shut down its operations in the country.
- The order to cease operations was issued to the crypt exchange Huobi and its CEO Leon Li whose younger brother Li Wei is accused of pocketing $7.45 million from free HT tokens.
- Justin Sun noted that the order from Malaysia’s SC is directed at the former Huobi platform and not the revamped company he advises, per reports.
The Malaysian Securities Commission launched enforcement actions against crypto exchange Huobi Global for operating an unregistered digital asset business.
A presser from the regulator on Monday said Huobi must “stop its operations in the country” and “disable its website and mobile application on several platforms such as Apple Store, Google Play, and any other digital application platform”.
The crypto exchange was also told to shut down any marketing or advertising efforts aimed at onboarding Malaysian users and investors. Monday’s enforcement action was directed at the crypto company and its CEO, Leon Li. The securities regulator specifically noted that CEO Li must ensure his company complies with the directive.
This decision comes after concerns about the platform’s compliance with local regulatory requirements and protecting investors’ interests. The SC views this breach seriously, as operating a DAX without obtaining the SC’s registration as a Recognised Market Operator (RMO) is an offence under Section 7(1) of the Capital Markets and Services Act 2007.
Not This Huobi Says Advisor Justin Sun
According to reports, Justin Sun said that the regulator’s order was issued to Huobi’s former entity and not the revamped platform he advises.
Indeed, Huobi’s controlling shareholder – who turned out to be CEO Leon Li – agreed to a deal to sell 60% of the company to Hong Kong investment firm About Capital Management. Reports said that Li sought $1 billion for his controlling stake while speculators claimed that Tron Founder Justin Sun was the true buyer, a claim he denies to this day.