Yahya 
Using its Hbit subsidiary, Hong Kong investment holdings business Sinohope, founded by Huobi (HTX) exchange co-founder Leon Li, would reclaim more than 100% of its trapped funds on the failing cryptocurrency exchange FTX.
Sinohope’s Debt Investment Deal Secures Recovery
A May 24 notice starting to circulate on May 28 says that Hbit has sold debt investment company Ceratosaurus Investors LLC $19.5 million worth of creditor claims. Sinohope has $18.1 million worth of deposits locked on FTX at the November 2022 crash date. The agreement suggests a 108% recovery percentage based on the assets of the company.
The unreturned money greatly affected Sinohope. The company said on December 13, 2023 that it expected a loss of $280 million Hong Kong dollars ($35.86 million) for the first nine months of the year, an increase from $200 million Hong Kong dollars ($25.61 million) it lost in the same time in 2022.
Included in the loss were $86 million Hong Kong dollars ($11 million) of business deposits frozen on the failing bitcoin exchange FTX. Leon Li had to personally provide a $14 million personal line of credit to save Sinohope clients impacted by FTX’s fall from business viability.
X-Spot Global, another firm controlled by Leon Li, obtained an injunction against Huobi Global on December 11, 2023, therefore forcing the latter to stop using the Chinese-equivalent “Huobi” trademark in Hong Kong.
Court papers state that the Huobi trademark was registered in Hong Kong in 2019. Co-founders Leon Li and Du Jun sold Huobi Global to About Capital Management, connected to Chinese blockchain entrepreneur Justin Sun, in September 2022. But before the purchase, Leon Li’s X-Spot Global had entirely acquired the rights to the Chinese-language Huobi trademark, therefore identifying the business as the trademark owner. Later last September Huobi changed its name to HTX.
The claims of FTX creditors, many of which are denominated in cryptocurrencies, have skyrocketed in value in reaction to a dramatic increase in crypto values amid the continuing bull market. Current projections for the range of claims recovery for FTX run from 129% to 143%.