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New Huo Technology unit gets $14M loan from ex-Huobi CEO Leon Li to cover client funds stuck on FTX

14 Nov, 20222 min readOther
New Huo Technology unit gets $14M loan from ex-Huobi CEO Leon Li to cover client funds stuck on FTX

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

Monika first started reading about crypto in 2020 and kept going deeper and deeper down the rabbit hole. While she is always skeptical of new projects, she earnestly believes blockchain and the crypto industry can bring relief to some of the most pressing problems of our time, including financial inequality and transparency. She is a voracious reader, and her fondness for food only rivals her love for books. Monika was previously a reporter at Jumpstart Media and Forkast News.

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