Huobi Global’s ex-CEO Leon Li has reached a US$14 million loan agreement with New Huo Technology Holdings, in which he is the majority shareholder, after New Huo revealed one of its subsidiaries has US$18 million of cryptocurrency locked in the bankrupt FTX exchange, according to an announcement on Monday.
See related article: FTX bankruptcy and fallout: Monday updates and commentary
Fast facts
- New Huo Technology said the company would use the funds to pay off client assets and liabilities arising from FTX’s bankruptcy where necessary.
- Due to FTX having filed for bankruptcy protection, the assets deposited on FTX may not be able to be withdrawn, New Huo Technology said in the announcement.
- New Huo Technology is the new name of Huobi Technology. Both founded by Leon Li, Huobi Technology and Huobi Global were once affiliates until the latter was sold.
- Li is no longer a shareholder in Huobi Global, but is the majority shareholder and non-executive director of New Huo Technology.
- New Huo Technology said the FTX collapse may materially impact the company’s financial performance, pending the resolution of the Chapter 11 bankruptcy filing by FTX.
See related article: FTX, authorities investigate potential US$477 mln theft