Huobi Global, a prominent cryptocurrency exchange, is facing a copyright infringement lawsuit filed by its former co-founder, Leon Lin Li. Li claims that even though he sold his majority stake in the company to an entity controlled by blockchain personality Justin Sun, his own company, X-Spo, still holds trademark rights associated with the term “Huobi Global.” Li alleges that the exchange has been using the trademark without authorization.
The reason behind Li’s decision to sue his own company remains unclear, but it could be linked to a series of disputes between Li and Justin Sun. Last month, Sun made allegations against Wei Li, Li’s brother, accusing him of receiving millions of Huobi (HT) tokens through abnormal means and consistently selling them off. In response, Li challenged Huobi to provide evidence and promised to personally pay ten times the amount of the tokens if they were acquired illegally.
In another case affecting the cryptocurrency industry, the fate of Singaporean crypto lending firm Hodlnaut will be determined on August 7. The firm halted operations last year after losing over $300 million of its clients’ assets from the collapse of the Terra Luna ecosystem. Hodlnaut is facing approximately $300 million in claims from creditors, who mostly want to see the company dissolved. However, the co-founders are determined to continue operations despite losing 69% of users’ deposits. Police in Singapore launched an investigation into Hodlnaut’s activities after the firm initially denied exposure to the Terra Luna ecosystem.
South Korean crypto lending firm Haru Invest recently announced the termination of some or all of its staff members. The firm had previously suspended users’ deposits and withdrawals and accused its consignment operator, B&S Holdings, of fraudulent operations. Haru Invest is filing both a criminal complaint and civil litigation against B&S Holdings. Delio, another South Korean firm, also announced a suspension of withdrawals due to exposure to Haru Invest but later clarified that withdrawals would resume, without disclosing a specific timeline. Furthermore, Haru Invest revealed that it is claiming bankruptcy.
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In a surprising turn of events, Kyle Davies, co-founder of bankrupt hedge fund Three Arrows Capital (3AC), announced the launch of a new venture called 3AC Ventures. The platform, called Raiser, allows users to borrow funds based on their on-chain creditworthiness. 3AC is still undergoing bankruptcy proceedings, and creditors recently filed a motion to hold Davies in contempt of court. However, the motion only applies to Davies and not his co-founder Su Zhu, as the latter is not subject to U.S. jurisdiction.
The crypto derivatives claims exchange OPNX, founded by Su Zhu and Kyle Davies, gained traction after its launch. After initially seeing low trading volume, the platform’s volume has now increased significantly. Following this success, OPNX filed a defamation lawsuit against venture capitalist Mike Dudas, alleging the publication of defamatory comments against the exchange. OPNX also introduced Justice Tokens (JT), citing the prevalence of defamation in the industry. One JT will exist for each defamation case, and the tokens will be distributed to OX stakers, JT-OX liquidity providers, and Milady nonfungible tokens holders.
In conclusion, the cryptocurrency industry has been embroiled in various legal disputes and controversies. From copyright infringement lawsuits to bankruptcy proceedings and defamation cases, these incidents highlight the challenges and complexities faced by companies in the crypto space.
