Huobi Global, a leading cryptocurrency exchange, is facing significant challenges on multiple fronts, including a trademark dispute, fraud allegations 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 company’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 known as Huobi). as ‘火必’ in Chinese) and has no connection to any of the company’s business activities after this date.
Furthermore, he expressed his objection to Huobi’s use of the Chinese characters ‘火币’ and ‘火幣’, which translate to ‘Huobi’ in English. According to Li, an agreement prohibits Huobi from using these terms in simplified or traditional Chinese. He demanded that the company immediately cease this alleged infringement and warned that their legal representatives will issue a letter to Huobi urging them to stop this infringement activity. He also indicated the possibility of taking other legal measures depending on the circumstances to protect his legal rights and interests.
Adding to the Huobi situation, Justin Sun, the actual controller of Huobi, was indicted by the US 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.
Huobi Global’s problems escalated further 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 market position.
These developments illustrate the increasing pressures and challenges in the cryptocurrency industry, with Huobi Global leading the way. The events that unfold are sure to shape the future landscape of cryptocurrency trading and regulation.
