Huobi, Confirming Justin Sun as Leader, Takes Aim at ‘Rat Trading’

Huobi, a Singapore-based exchange, said Thursday that Justin Sun, the creator and CEO of Tron and one of the wealthiest persons in crypto, is not only a member of the Global Advisory Board but also the exchange’s CEO.

“Under Justin Sun’s guidance, it can be claimed that Huobi has launched on the path to rebirth,” the blog post added.

Sun joined the Global Advisory Board in October, shortly after Hong Kong-based investment firm About Capital Management acquired a majority share in Huobi, although it had not previously been established that Sun was in command of the exchange.

The timing has generated industry speculation that Sun is a shadow investor in About Capital, although Sun spokespeople have told CoinDesk that he is not an owner of the company. 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 handled its 1,600 layoffs in January.

The discussion also touched on the issue of so-called rat trading.

“Several accounts that were frozen for aberrant conduct are defined by their lack of transaction at normal hours,” the document says. “However, these accounts have been trading Huobi’s new tokens and ecological tokens often, while shifting assets in and out swiftly. According to examinations, these accounts have produced unusually large profits on numerous occasions, and the profits were swiftly taken. These are unmistakably rat trading characteristics.”

According to Huobi, it has “zero tolerance for rat trading.”

“Under the new management, Huobi will continue to perform in-depth audits, hold accountable responsible people, and disseminate information in due time,” the statement said. “Huobi’s commitment to defending the interests of its staff and users is demonstrated by a steadfast and constant crackdown on rat trading.”