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$ 68.080
BTC Dominance:
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Market Cap:
$2.44 T

Sinohope’s Hbit Subsidiary Recovers Over 100% of Trapped Funds from FTX Collapse

Hong Kong, Bitcoin Etf, Ethereum Etf

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.

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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%.

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