Huobi Co-founder Recovers 108% of FTX Deposits
Sinohope, a Hong Kong-based investment holdings company established by Leon Li, co-founder of the Huobi (HTX) exchange, announced a significant financial recovery. Through its subsidiary Hbit, Sinohope is set to reclaim more than 100% of its deposits that were immobilized on the now-defunct crypto exchange FTX. This update was officially shared on May 24, but gained wider attention later on May 28. Hbit has successfully sold $19.5 million worth of creditor claims to the debt investment firm Ceratosaurus Investors LLC. At the time of FTX’s collapse in November 2022, Sinohope had $18.1 million of its assets trapped on the platform. The deal suggests a recovery rate of 108% of the original deposit amount.
The financial impact of FTX’s collapse was substantial for Sinohope. On December 13, 2023, the company reported an anticipated loss of $280 million Hong Kong dollars (around $35.86 million) for the first nine months of the year. This was a substantial increase from the $200 million Hong Kong dollars (approximately $25.61 million) loss recorded during the same period the previous year. A significant portion of these losses was attributed to $86 million Hong Kong dollars (roughly $11 million) in enterprise deposits that remained locked on FTX.
To manage the fallout from FTX, Leon Li personally extended a $14 million credit line to assist Sinohope’s customers who were affected by the exchange’s downfall. This gesture underscored the severe financial strain that the freeze on FTX deposits had caused for Sinohope and its stakeholders.
In another related development, on December 11, 2023, X-Spot Global, another company owned by Leon Li, achieved a legal victory against Huobi Global. The court issued an injunction mandating Huobi Global to stop using the Chinese-equivalent “Huobi” trademark within Hong Kong. According to legal documents, the Huobi trademark had been registered in Hong Kong since 2019. When Leon Li and co-founder Du Jun sold Huobi Global to About Capital Management in September 2022, a company connected to Chinese blockchain figure Justin Sun, the rights to the Chinese-language Huobi trademark had already been transferred to X-Spot Global.
Following this acquisition, Huobi rebranded itself to HTX last September. This change was in part to reflect the shift in ownership and possibly the legal proceedings concerning the trademark rights. The resolution of these matters highlights the complexities involved in the management and ownership of intellectual property within the competitive cryptocurrency industry.
The increase in cryptocurrency prices has led to a surge in the value of FTX creditors’ claims, many of which are cryptocurrency-denominated. This surge has resulted in higher-than-expected recovery estimates. Analysts currently estimate that recoveries for FTX creditors could range between 129% and 143%.
The recovery of over 100% of Sinohope’s assets locked in FTX will likely offer substantial financial relief and stabilize its financial status. It also sets a precedent for other entities trying to reclaim their trapped assets from collapsed financial institutions and crypto exchanges. Sinohope’s case demonstrates a rare instance where a comprehensive recovery of investments is achieved following such a significant financial disruption.
The strategic sale of creditor claims and legal maneuvers initiated by Sinohope and its related entities reflect a proactive approach in mitigating financial losses and reclaiming assets. This move might inspire other firms entangled in similar financial casualties to pursue proactive and strategic measures for asset recovery.
32 thoughts on “Huobi Co-founder Recovers 108% of FTX Deposits”
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Fantastic news for Sinohope and their customers! Their recovery process has been nothing short of exemplary. Well done! 💼
A truly positive story in the crypto world! Sinohopes ability to recover more than 100% of their deposits is inspirational.
Such great news for Sinohope! Their ability to reclaim over 100% of their deposits from FTX is truly an outstanding achievement. Bravo! 🏆
Fantastic achievement! Sinohope’s asset recovery from FTX sets a new benchmark. Hats off to the team for such strategic excellence!
Selling off claims to scrape back some cashpathetic. This industry is full of clowns.
Kudos to Sinohope for securing such a high recovery rate! This could very well be the blueprint for other entities trying to reclaim their trapped assets.
Nice try, but this hardly makes up for the huge losses they initially reported.
FTX fails and Sinohope kind of gets its money back? This industry is a mess.
Leon Lis decision to extend a $14 million credit line to Sinohopes customers during such tough times is a true mark of leadership. Respect!
Sinohope’s recovery is a beacon of hope for others affected by financial collapses. Their strategic success is worthy of much admiration.
Wow, reclaiming a bit more than what was lost doesn’t erase the fact that they got trapped in FTX’s mess in the first place.
That’s a fantastic turnaround! The way Sinohope managed to recover more than their initial deposits is a testament to their strategic prowess. Well done!
It’s funny how they’re spinning this as a win when the whole scenario screams disaster.
Leon Li’s leadership shines through Sinohope’s remarkable financial recovery. This case will surely inspire many. Bravo!
Truly heartening to see Sinohope’s successful recovery. Leon Lis leadership played a crucial role in navigating this crisis. Remarkable feat!
Sinohopes strategic recovery from the FTX collapse is truly inspiring. More than 100% recovery is an incredible feat. Cheers to them!
This is incredible news for Sinohope and all its stakeholders. Financial recovery stories like this give hope to many others still affected by the FTX collapse.
Financial turnarounds like this are rare and extraordinary. Sinohope has proven that effective measures can lead to significant recovery. Marvelous!
X-Spot and Huobi fighting over trademarks just feels petty and unnecessary. Grow up.
What an incredible journey for Sinohope! Reclaiming more than their initial deposits is a massive win. Their strategic moves are commendable.
The fact they had to sell creditor claims to recover is just embarrassing.
Wow, Sinohope’s recovery is nothing short of amazing! Reclaiming more than 100% of their deposits is truly impressive. Kudos to Leon Li and the team!
Legal victories and financial recoveries don’t mask the huge hit Sinohope took.
The recovery rate of 108% is absolutely phenomenal. Sinohope’s proactive steps showcase their strong strategic planning and resilience.
Such great news for Sinohope and Hbit! Their recovery story is bound to inspire other firms affected by similar financial disruptions. Treated like a masterclass in crisis management.
Leon Li putting in $14 million of his own money? Desperate much?
Yeah, sure, they got their money back—after a year of financial agony. What a great business model. 😏
Awesome turnaround for Sinohope! Clawing back more than their initial deposit shows resilience and strategic acumen. Way to go! 🌐
Leon Lis proactive measures during the FTX collapse have now paid off spectacularly for Sinohope. What an inspiring success story!
So they recovered some money. Doesn’t wipe out the incompetence that led to those losses. 😒
Sinohope’s financial recovery from the FTX debacle is an encouraging example for the entire industry. Hats off to Leon Li and the incredible team! 🎩
This sounds like way too much drama for just making up a bit of lost ground. 😒