Friday, July 12, 2024

Huobi Global Faces Mounting Challenges: Trademark Dispute, Legal Troubles, and Operations Suspension

Huobi Global, a prominent cryptocurrency exchange, is encountering significant challenges on multiple fronts, encompassing a trademark dispute, allegations of fraud against a key person, and an order to halt its operations in Malaysia.

Li Lin, the founder of Huobi, has openly disassociated himself from the firm’s operations since October 8, 2022. In a statement posted on his WeChat ‘Moments’, Li clarified that he is no longer a shareholder of Huobi (also referred to as ‘火必’ in Chinese) and has no connection with any of the company’s business activities post this date.

Further, he voiced his objection to Huobi’s usage of the Chinese characters ‘火币’ and ‘火幣’, which translate to ‘Huobi’ in English. As per Li, an agreement prohibits Huobi from using these terms in either simplified or traditional Chinese. He demanded that the company immediately cease this alleged infringement and warned that his legal representatives will issue a letter to Huobi urging them to stop this infringement activity. He also indicated the possibility of taking further legal measures depending on the circumstances to protect his legal rights and interests.

Adding to Huobi’s predicament, Justin Sun, the actual controller of Huobi, was charged by the U.S. Securities and Exchange Commission (SEC) on March 22. In an official press release titled “SEC Charges Crypto Entrepreneur Justin Sun and His Companies for Fraud and Other Securities Law Violations,” the SEC accused Sun of fraud and violating securities laws.

The troubles for Huobi Global further escalated on May 22 when the company received an order to halt its operations in Malaysia. This order adds to the global scrutiny that cryptocurrency exchanges are currently facing, and will undoubtedly influence Huobi’s future operations and its standing in the market.

These developments illustrate the mounting pressures and challenges in the cryptocurrency industry, with Huobi Global at the forefront. The unfolding events will surely shape the future landscape of crypto trading and regulation.

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