Sinohope Set to Recover 108% of Stuck Deposits from Defunct FTX, As Leon Li’s X-Spot Global Wins Trademark Case
Summary:
Sinohope, a Hong Kong-based investment company founded by Huobi co-founder Leon Li, is set to recover over 100% of its trapped deposits at the defunct cryptocurrency exchange, FTX through its Hbit unit. The firm, which endured substantial financial impact from the event, sold $19.5m worth of creditor claims to Ceratosaurus Investors. In another development, X-Spot Global, owned by Li, won an injunction against Huobi Global to stop it from using the "Huobi" trademark in Hong Kong.
Sinohope, the Hong Kong-based investment holdings firm established by Huobi (HTX) exchange’s co-founder, Leon Li, is set to regain over 100% of its frozen deposits on the non-operational cryptocurrency exchange, FTX, through its Hbit division. As of May 28, reports began to emerge regarding a May 24 announcement stating that Hbit has offloaded $19.5 million in creditor claims to debt investment company, Ceratosaurus Investors LLC. At the time FTX shuttered in November 2022, Sinohope had $18.1 million in deposits stuck on the platform. This suggests a 108% asset restoration rate for the company. The outstanding funds had a significant impact on Sinohope's operations. On December 13, 2023, it projected a loss of $280 million Hong Kong dollars ($35.86 million) for the year's initial nine months, a rise from the $200 million Hong Kong dollars ($25.61 million) loss recorded during the corresponding period of 2022. The losses include $86 million Hong Kong dollars ($11 million), which represents the business deposits frozen on the bankrupt FTX exchange. To ensure Sinohope’s survival, Leon Li personally provided a $14 million personal line of credit to assist affected customers. On December 11, 2023, X-Spot Global, another one of Leon Li’s enterprises, secured an injunction against Huobi Global, requiring it to stop using the Chinese "Huobi" trademark in Hong Kong. According to court records, the trademark was registered in Hong Kong in 2019. In September 2022, Huobi’s co-founders, Leon Li and Du Jun, sold Huobi Global to About Capital Management, a company associated with Chinese blockchain popular figure Justin Sun. However, before the sale, all rights to the Huobi trademark in Chinese language had been completely transferred to Leon Li's X-Spot Global, thus securing its ownership. Huobi subsequently adopted the name HTX last September. As cryptocurrency prices continue to surge during the current bull market, the value of FTX creditors' demands, many of which are expressed in cryptocurrencies, have skyrocketed. Current calculations for FTX's claim recovery range between 129% and 143%.
Published At
5/28/2024 5:57:16 PM
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