Huobi Global’s founder, Li Lin, has filed a lawsuit against the company for violating the trademark. The lawsuit claims that Huobi Global is not authorized to use the trademark as per the acquisition agreement.
In a recent development in the world of cryptocurrency, reports suggest that Huobi Global is facing a legal battle initiated by none other than its own founder, Li Lin. According to crypto reporter Colin Wu, the lawsuit has been filed against the exchange in relation to the use of its Chinese trademark.
It is alleged that the firm has been using the trademark without proper authorization, which goes against the terms of the acquisition contract. Li Lin had previously sold his stake in the exchange to About Capital, an investment firm based in Hong Kong that is headed by Justin Sun, the founder of Tron (TRX).
Huobi Founder in Infringement Battle
As per the reports, the exchange started using the “Huobi” trademark again after Sun blocked Lin’s brother’s account. This move goes against the ownership transfer and asset delivery agreement between the two parties, which clearly states that the buyer is not allowed to use the “Huobi” name or brand.Wu, who is familiar with the case, reveals that X-Spot Limited has maintained sole ownership of the “Huobi” trademark, as per the indictment.
Furthermore, the company claims that the trademark has been used without its consent. The original shareholders have also reportedly decided to retain the exclusive rights to the “Huobi” trademark and have ensured that these rights will not be transferred to the buyer. This recent legal action highlights the importance of adhering to ownership and trademark agreements in the business world.
The ongoing conflict between Sun and Lin’s brother is not something new. According to Sun, previously, Lin’s brother had allegedly disposed of the HT tokens that were given to him for free by the company. Sun further claimed that Lin’s brother sold the tokens for a considerable amount of money and had not contributed anything to the HT community.
As for Huobi’s HT token, it has remained silent amidst the lawsuit. At present, the token is trading at $2.70, showing a 3.7% increase in the last 24 hours and a 1.6% increase over the previous week. However, it is important to note that the token has suffered a massive decline of 93.23% from its all-time high of $39.66, which was achieved in May 2021.
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