Huobi, one of the leading cryptocurrency exchanges, is facing an unusual situation as its co-founder, Leon Lin Li, has filed a copyright infringement lawsuit against the company.
Li claims that despite selling his majority stake to a company controlled by Chinese blockchain personality Justin Sun, his own company, X-Spo, still holds trademark rights associated with the term “Huobi Global.” He alleges that Huobi Global has been using the trademark without proper authorization.
The reason behind Li’s decision to sue his own company is not entirely clear, but it may be related to a series of heated exchanges between Li and Justin Sun last month.
In a separate development, the fate of Hodlnaut, a Singaporean crypto lending firm, will be determined in August. Hodlnaut suspended its operations last year after losing over $300 million of its clients’ assets due to the collapse of the Terra Luna ecosystem.
The firm is facing significant claims from creditors, with most of them advocating for its dissolution. However, the co-founders of Hodlnaut, Juntao Zhu and Simon Lee, want to continue operating the firm, despite the substantial loss of users’ deposits.
The company is also under investigation by Singaporean authorities for initially denying its exposure to the Terra Luna ecosystem.
Another setback in the Asian cryptocurrency market involves South Korean crypto lending firm Haru Invest.
The company announced that it would be reducing its operations and terminating a portion or all of its staff.
This decision came after Haru Invest accused its consignment operator, B&S Holdings, of engaging in fraudulent activities. The situation worsened when fellow South Korean firm Delio, which had reported over $9 billion in assets under management, suspended withdrawals due to its exposure to Haru Invest.
Haru Invest has also claimed bankruptcy and filed both a criminal complaint and civil litigation against B&S Holdings.
Meanwhile, there are signs of a comeback for the co-founders of bankrupt Singaporean hedge fund Three Arrows Capital (3AC). Kyle Davies, one of the co-founders, announced on Twitter that he and Su Zhu, the other co-founder, have launched a new venture called 3AC Ventures.
Despite their previous involvement in the downfall of 3AC due to leveraging, the new venture emphasizes risk-adjusted returns without leverage. 3AC Ventures has introduced its first investment project, called “Raiser,” which enables users to borrow funds based on their on-chain creditworthiness.
In addition to these developments, the founders of OPNX, a platform for trading claims against bankrupt crypto entities, have surprised the industry with their unexpected success.
The platform, founded by Kyle Davies and Su Zhu, has experienced a significant increase in trading volume, rising from a meager $13.64 on its debut to $34.1 million by late June.
OPNX has also filed a defamation lawsuit against venture capitalist Mike Dudas, alleging the publication of defamatory comments. The exchange has introduced “Justice Tokens” to combat defamation in the industry.
As the cryptocurrency landscape in Asia continues to evolve, these legal battles, bankruptcies, and comebacks highlight the volatile nature of the industry. While some companies face challenges and controversies, others strive to rebuild and make a mark in the market.
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