The former co-founder of the cryptocurrency exchange Huobi Global, Leon Lin Li, has sued the exchange in Hong Kong alleging that the company has been using the name “Huobi Global” with no trademark authorisation.
The news were reported by local outlets on 21 June, CoinTelragraph noted, adding that Li had sold the majority of his stake in Huobi Global to Justin Sun, the founder of TRON, one of the largest blockchains worldwide.
What Allegations Is Huobi Facing?
According to the filed complaint, Huobi Global Limited has been using the given name without Li’s company X-Spot’s authorisation.
During a major share sale on 8 October 2022, however, all shareholders had agreed to sell About Capital’s entire shareholding in Huobi Global and had agreed to allow the company to use the Huobi trademark, according to a statement published on the Huobi website.
“Upon completion of the transaction, the buyout vehicle of About Capital will control the majority stake in Huobi Global. The transaction only involves the change of controlling shareholder and has no impact on Huobi’s core operation and business management teams,” the statement read.
Official statements by Huobi and Sun were yet to be released.
Moreover, on the same day that the lawsuit was filed, Malaysia’s Securities Commission had ordered Huobi to terminate its operations in the country amid allegations it had been operating without registration.
Huobi and Tron Founders in Feud
Li and Sun had found themselves in a feud once previously too. Reports in the middle of May indicated that Sun had accused Li’s brother, Wei Li, for allegedly acquiring the native token of Huobi, HT, for free and then selling it for a large sum.
According to CoinDesk, in an interview with Sun, the entrepreneur had alleged that Li had “received millions of HT tokens for free” during the cryptocurrency’s initial distribution.
“Li Wei has been consistently selling off these HT tokens and cashing out. Now, the HT DAO committee is stepping in to rectify this issue. We plan to engage with Li Wei to negotiate a refund and arrange for the destruction of his remaining HT tokens,” he added.
Li had replied to Sun’s accusations saying that Huobi was happy to provide any substantial evidence none of the accusations took place and if any laws were broken, he would be willing to reimburse 10 times the amount of HT tokens lost.
At the time of the allegations, HT saw huge price swings, following news that Li Wei had dumped vast amounts of it after Sun’s accusations.
HT Token Down 1% Following News
In the past 24 hours, the HT token lost 1.06% of its value falling down to $2.68 from $2.71 a day earlier.
The token’s bearish run continues which was pushed by Li Wei’s dump in mid-May. In the past month, the token had lost over 16% of its value, according to data from CoinMarketCap.
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