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.
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