According to crypto reporter Colin Wu, Huobi Global is being sued by its founder Li Lin. The suit is in regard to the use of its Chinese trademark. The firm allegedly does not have permission to use the trademark as part of the acquisition contract. Li sold his stake in the exchange to Hong Kong-based investment firm About Capital. About Capital is spearheaded by Tron (TRX) founder Justin Sun.
As per the report, Lin’s X-Spot Co., Ltd. filed a lawsuit against Huobi Global Limited in the High Court of the Hong Kong Special Administrative Region. The exchange reportedly began re-using the “Huobi” trademark after Sun blocked Lin’s brother’s account. According to the ownership transfer and asset delivery agreement between the two parties, the buyer is reportedly not permitted to use the “Huobi” name or brand.
What does the filing claim about Huobi’s trademark?
Wu says that, according to the indictment, X-Spot Limited has maintained sole ownership of the “Huobi” trademark. Additionally, it claims that the company has been utilizing the trademark without X-Spot’s consent. Moreover, the original shareholders reportedly decided to keep the exclusive rights to the “Huobi” trademark. Furthermore, they reportedly ensured that these rights will not be transferred to the buyer.
However, this is not the first time there has been conflict between the two parties. Sun has claimed that Lin’s brother had dumped the firm’s native HT tokens, which he got for free. Additionally, Sun claimed that Lin’s brother sold the tokens for “huge amounts of cash.” Sun further stated that Lin’s brother had not made any contributions to the HT community.
Huobi’s HT token has not responded to the lawsuit. At press time, HT was trading at $2.70, up by 3.7% in the last 24 hours. Moreover, the token is up by 1.6% over the previous week. However, the token is down by a whopping 93.23% from its all-time high of $39.66, attained in May 2021.
Watcher Guru has reached out to Colin Wu for additional details, but has not received a response yet.