Tron founder Sun Yuchen publicly revealed on Twitter today that during his acquisition of Huobi, Huobi founder Li Lin concealed due diligence materials, resulting in a massive financial gap of $30 million at the time of settlement. Sun Yuchen stated that after discovering this issue, he had to use personal funds to fill this gap.
Incident review:
The core of this revelation lies in Sun Yuchen's claim that Huobi did not fully disclose its financial risks during the acquisition process, particularly that there were serious discrepancies in the accounting of user assets, leading to Sun Yuchen discovering significant errors in Huobi's asset calculations after the acquisition. Specifically, Sun Yuchen pointed out that Li Lin did not fully present the potential risks of Huobi's margin trading business during the due diligence phase, especially the 'liquidation' issues that might arise under extreme market conditions. Ultimately, Huobi's financial situation at the time of settlement was far from expected, which forced Sun Yuchen to provide emergency financial support to the company to cover this $30 million 'gap.'