New Huo Technology unit gets $14M loan from ex-Huobi CEO Leon Li to cover client funds stuck on FTX New Huo Technology unit gets $14M loan from ex-Huobi CEO Leon Li to cover client funds stuck on FTX
Hbit Limited, a subsidiary of New Huo Technology, has around $18.1 million locked on FTX — $13.2 million of which belongs to customers.
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Updated: Sep. 26, 2023 at 2:22 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Hbit Limited, a fully owned subsidiary of New Huo Technology, has approximately $18.1 million worth of assets stuck on FTX, which filed for bankruptcy last week, according to Nov. 14 press release.
Huobi Technology, which used to be an affiliate of Huobi Global before Justin Sun acquired the exchange, was rebranded New Huo Technology in October.
Around $13.2 million of the locked assets belong to users, while the remaining $4.9 million belongs to the New Huo Technology itself, the press release noted.
New Huo Technology will employ a legal adviser and continue to work with FTX to recover the locked funds, according to the press release. The board said the funds stuck on FTX do not “affect the normal business operations of the Group,” since the subsidiary is a separate legal entity.
However, the board warned that the “financial performance of the Group might be materially and adversely affected” if the funds are not recovered.
On Nov. 13, Huobi founder and former CEO Leon Li, who owns a 53.37% stake in the firm, offered to tide things over in the meantime. As a non-executive director of New Huo Technology, Li offered an unsecured non-interest-bearing loan of $14 million to help cover user asset liabilities
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Monika Ghosh
In 2020, Monika immersed herself in crypto, maintaining skepticism yet firmly believing blockchain could address key issues like financial disparity and transparency. A book-lover, she's also a passionate food enthusiast.
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HTX
Huobi, a virtual asset exchange, launched a revised branding strategy on September 13, 2023, where “Huobi” will be rebranded as “HTX.” “H” stands for Huobi, “T” represents TRON with a commitment to being all in TRON, and “X” stands for the exchange.
FTX
FTX is a defunct cryptocurrency exchange, currently in bankruptcy proceedings, that was founded by Sam Bankman-Fried and Zixiao “Gary” Wang in May 2019.