Home
News
- Leon Li offers a $14 million loan to New Huo Technology to recover losses trapped in the FTX crash.
- New Huo Tech’s subsidiary company worth $18.1 million of crypto is non-withdrawable to the sudden collapse.
- Company’s financial performance may get adversely affected until this matter is resolved.
Leone Li Acts to Facilitate
Chinese crypto tycoon, Leon Li has offered New Huo Technology a $14 million loan as per the agreement. He is the founder of both, Huobi Global and New Huo Technology.
According to Forbes, as per the statement, the Chairman Li has agreed to give an ‘unsecured facility’ of the above mentioned amount “for the purpose of covering client asset liability.”
As per the news reports, Hbit Ltd, a wholly owned subsidiary company of the Huobi Group has deposited $18.1 million of crypto assets in FTX, which are now stuck and non-withdrawable as a result of crypto exchange declaring bankruptcy under Chapter 11.
As on 13 October,2022, in a Notice of Extraordinary General Meeting report mentions that Huobi Technology Holdings Limited’s name is changed to New Huo Technology Holdings Limited. Spokesperson said- “it will provide company with a fresh image and identity”.
New Huo Tech is a investment holding firm which is also engaged in the manufacturing and sales of electric, electronics and energy related products.It has generated a total revenue of $610.7 millions in 2021 with a total assets and liabilities accounting for $878.13 millions and $599.52 millions respectively.
Stuck due to FTX Saga
As per the media reports, estimated $13.2 million of client’s assets and $4.9 million are trapped in FTX collapse. Leon Li who is famously known for founding one of the world’s largest crypto exchange, Huobi Global. It was founded in 2013. As reported by anonymous sources, it is found that 100% stake of Huobi Global is sold to a Hong Kong-based investment firm About Capital Management backed by Justin Sun.
Justin Sun, founder of Blockchain DAO ecosystem Tron, is also a core investor of About Capital. In previous interviews and conversations, both Sun and ‘bank run’ exchange FTX founder and Former CEO Sam Bankman-Fried denied their hands in the Huobi deal.
The officials said that the business operations remain unaffected due to the fund’s withdrawal under the FTX collapse. Leon Li currently holds 53% of New Huo Tech’s stakeholdings. Li is no more so called ‘shareholder’ in his self-founded crypto exchange Huobi Global.The company states that financial performance will be “materially” impacted until this FTX saga is resolved.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
