After Justin Sun disclosed that the Huobi sale had a significant discrepancy, Huobi co-founder Li Lin responded to Sun’s claims with a clarification, stating that there was no “funding hole” as alleged.
Li Lin Responds to Justin Sun’s Allegations
Li Lin took to X, explaining that during the HTX delivery process in October 2022, both parties had major differences in their calculation methods for user assets. He shared that he had communicated with Justin Sun multiple times, and Sun had also expressed his intention to further review the accounts and clarify the facts.
李林：关于孙宇晨先生近期言论的回应
今日，孙宇晨先生在社交媒体上发布了一条关于HTX（原火币）交割过程及财务状况的言论，引发市场广泛关注。为了尊重事实、维护各方权益，我在此做出如下声明，以澄清事实，并提供合理的解决方案。
一、关于交割过程中资产计算方式的不同理解… pic.twitter.com/iYVCaBQzSD
— Du Jun (@DujunX) February 5, 2025
Lin added, “This is not a case of ‘concealment of transfer’ or a ‘funding hole.’ Instead, because two years have passed since the completion of the delivery, there have been significant changes in core personnel and financial data, leading to misunderstandings between both parties regarding the calculation method of financial data at the time of delivery.”
Addressing Sun’s claim of a “$30 million funding hole,” Lin clarified that it was essentially a margin call caused by extreme market conditions when the trading platform was engaged in margin trading (leverage) operations. At the time of delivery, the company’s revenue had already been allocated to handle this financial processing, and the assets delivered to the seller fully covered the users’ assets. Therefore, Lin asserted, there was no so-called “funding hole.”
Lin further alleged that despite the lack of clarity and serious differences between both parties, Sun used his strong media influence to make unilateral public statements. Lin claimed that Sun’s actions misled investors, causing reputational and business damage.
Concluding his statement, Lin urged, “I ask Mr. Justin Sun to immediately stop such behavior, return to the legal framework, and resolve business disputes through reasonable and legal channels.” Lin’s statement comes in the backdrop of Sun’s claims that during the sale of co-founder Lin’s stake in the crypto exchange Huobi (now HTX), Lin concealed the due diligence materials and created a $30 million hole internally.
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