In response to New Huo’s disclosure that one of its companies had US$18 million in cryptocurrencies locked up in the defunct FTX exchange, the former CEO of Huobi Global, Leon Li, has agreed to provide US$14 million to the company, in which he holds a controlling stake.
According to New Huo Technology, the monies would be used, as necessary, to settle customer liabilities and assets resulting from FTX’s bankruptcy.
The assets put on FTX may not be able to be withdrawn as a result of FTX having sought bankruptcy protection, according to New Huo Technology’s release.
The brand-new name for Huobi Technology is New Huo Technology. Huobi Technology and Huobi Global, both of which were created by Leon Li, were originally affiliated before Huobi Global was sold.
Li is the majority shareholder and non-executive director of New Huo Technology but is no longer a shareholder in Huobi Global.
According to New Huo Technology, the financial performance of the company could be significantly impacted by the FTX collapse, pending the outcome of FTX’s Chapter 11 bankruptcy filing.
