Huobi founder Li Lin has taken legal action against Huobi Global, filing a trademark infringement lawsuit in the High Court of the Hong Kong Special Administrative Region.
The lawsuit alleges that Huobi Global has been unlawfully using the Chinese trademark “火币” without proper authorization.
The controversy arose from the acquisition of the exchange by Justin Sun, a prominent figure in the cryptocurrency industry, who purchased the company for a staggering sum of over $1 billion just last year.
Trouble between the parties escalated when Sun froze the account belonging to Li Lin’s brother and accused him of dumping HT earlier this year.
According to exclusive information obtained by Wu Shuo, a reliable source in the cryptocurrency sector, X-Spot Co., Ltd., a company controlled by Li Lin, officially filed a lawsuit against the exchange.
The legal action asserts that X-Spot Limited, as the rightful owner of the exchange trademark, has not authorized Huobi Global to use the brand name.
During the acquisition process, when the original shareholders transferred their Huobi Global shares to About Capital Management, they explicitly agreed to maintain the exclusive rights to the “Huobi” trademark.
The equity transfer and asset delivery agreement between the parties explicitly prohibited the buyer and the exchange from utilizing the “Huobi” trademark and brand. These measures were put in place to safeguard X-Spot Limited’s exclusive rights.
Huobi Token Price Analysis
Despite the ongoing legal battle, the exchange’s token has shown promising signs in recent days. Both the daily and weekly charts have witnessed notable gains as the cryptocurrency turned green, indicating positive market performance. It appears that the token’s value remains unaffected by the legal turmoil surrounding its parent company.
According to the latest data from CoinMarketcap, HT is currently trading at $2.70, showcasing a bullish upside ride of approximately 4% within the past 24 hours. The weekly chart also displays an increase of 1.89%, signifying a touch of market volatility.
Drawing attention to HT’s trading volume, it has observed a notable increase of 13.20% to a staggering $17,508,810,578. The market capitalization has experienced a decrease of 4.27%.
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