June 4, 2024
Latest Cryptocurrency News

Sinohope Undergoes a Remarkable Recovery From FTX Debacle

Hong Kong investment holdings company Sinohope, founded by Leon Li, co-founder of Huobi (HTX) exchange, is poised to surpass expectations in recovering assets from the defunct crypto exchange FTX. Through its subsidiary Hbit, Sinohope has orchestrated a deal that promises to reclaim over 100% of its deposits stuck on FTX. Thus, marking a significant turnaround for the beleaguered firm.

Strategic Sale to Ceratosaurus Investors LLC

In a savvy move disclosed on May 24 and circulated widely by May 28, Hbit announced the sale of creditor claims worth $19.5 million to debt investment firm Ceratosaurus Investors LLC.

This strategic maneuver comes after Sinohope found itself grappling with $18.1 million worth of deposits stranded on FTX since its collapse in November 2022. The deal signals a remarkable recovery ratio of 108% of the company’s assets, defying initial expectations.

Leon Li’s Uphill Battle

The journey to recovery hasn’t been without its challenges for Sinohope. Materially impacted by the unreturned funds, the company faced a daunting loss, exacerbated by the immobilized enterprise deposits on FTX. To salvage the situation and support affected customers, Leon Li extended a personal line of credit worth $14 million. Thus, underscoring his commitment to the firm’s revival amidst adversity.

Sinohope: Legal Wrangles and Rebranding

The narrative surrounding Sinohope’s recovery is intertwined with legal battles and corporate restructuring. Leon Li’s other venture, X-Spot Global, secured an injunction against Huobi Global, compelling the cessation of the “Huobi” trademark’s use in Hong Kong.

Furthermore, this legal skirmish sheds light on the intricate ownership dynamics post-Huobi’s acquisition by About Capital Management. Amidst these legal intricacies, Huobi’s rebranding to HTX last September signifies a shift in the crypto landscape.

As the crypto market continues its bullish trajectory, FTX creditors’ claims have surged in value. This offers a glimmer of hope for investors. With estimates for FTX’s claims recovery ranging from 129% to 143%, Sinohope’s remarkable turnaround underscores the resilience and adaptability crucial in navigating the volatile crypto sphere.

Image by vectorjuice on Freepik

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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