- Huobi Global has reportedly been sued by its founder Li Lin in Hong Kong.
- The founder has accused the crypto exchange of illegally using its Chinese trademark.
- HT tokens belonging to Lin’s brother were frozen by Huobi Chief Justin Sun earlier this year.
Huobi Global has reportedly been sued by its founder Li Lin in Hong Kong. Lin has filed formal charges against the crypto exchange for allegedly infringing the trademark associated with the crypto firm. The lawsuit had no visible impact on the price of the Huobi Token (HT) at the time of writing.
According to a report by Wu Talk, Li Lin used an entity called X-Spot Co. Ltd to sue Huobi Global for trademark infringement in the High Court of the Hong Kong Special Administrative Region earlier today. Lin has accused the crypto exchange of re-using the “Huobi” trademark, which was not allowed to continue to be used in the original acquisition contract.
Huobi Global was acquired by crypto entrepreneur and Tron founder Justin Sun for over $1 billion last year. As per the indictment, X-Spot, controlled by Li Lin, retained the exclusive rights to the Huobi trademark, and the crypto exchange had utilized the trademark without authorization.
Lin’s lawsuit claimed that when the exchange’s owners transferred their Huobi Global shares to Justin Sun’s About Capital Management, they agreed to retain the exclusive rights to the “Huobi” trademark and ensured that these rights would not be transferred to Huobi’s buyers. The equity transfer and asset delivery agreement between the two parties allegedly stipulated that the buyer was prohibited from using the “Huobi” trademark and brand.
In response to the lawsuit, Huobi Global asserted that it had the right to use the trademark in several legal jurisdictions around the world. The legal trouble comes just a month after Justin Sun accused Li Lin’s brother of dumping Huobi Tokens, which were given to him for free. Sun claimed that Lin’s brother sold large amounts of HT for cash.
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