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Huobi’s sister company weighs name change

Huobi Technology Holdings Limited, the sister company of global digital exchange giant Huobi Global, is weighing changing its name, with the proposal to be voted on in an upcoming annual general meeting.

Currently listed in Hong Kong, the company is the sister firm of Huobi Global—the exchange—and also operates an asset management fund, institutional custody services, and over-the-counter (OTC) trading services.

The company is seeking to change its name to New Huo Technology Holdings Limited, a proposal that shareholders will get to vote on in a few weeks’ time during the October 13 annual general meeting.

“The Board believes that the proposed Change of Company Name will provide the Company with a fresh corporate image and identity which will benefit the Group’s future business development and is in the interests of the Company and the Shareholders as a whole,” the company said.

In its letter, the board clarified that the name change would not affect any of the company’s operations or shareholding. However, subject to approval from regulators, any new shares issued will be under the new name.

Huobi has sought to clarify several times in the past that its exchange business is independent of all its other business divisions, including its asset management and OTC arms.

This distinction is critical for investors, especially in light of the disastrous results that comingling different business lines has had, such as with iFinex’s Tether stablecoin and Bitfinex exchange. The two got off lightly with a paltry fine for lending money amongst themselves and losing hundreds of millions of dollars without disclosing it to investors.

The name change comes at a time when Huobi Global is reported to be fishing for a new majority owner. Bloomberg reported in August that founder Leon Li was looking to sell about 60% of the exchange in a deal that would value it at $3 billion.

At the time, it was reported that TRON founder Justin Sun and FTX’s money man Sam Bankman-Fried were among those lined up to invest in Huobi. However, both later denied the links.

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