Huobi co-founder’s firm recovers 108% of deposits from FTX collapse
The creditors’ claims were sold for cash to Delaware-based Ceratosaurus Investors LLC.
Hong Kong investment holdings company Sinohope, created by Huobi (HTX) exchange co-founder Leon Li, will recover more than 100% of its stuck deposits on the defunct crypto exchange FTX via its Hbit subsidiary.
According to a May 24 announcement that began circulating on May 28, Hbit has sold $19.5 million worth of creditor claims to debt investment firm Ceratosaurus Investors LLC. At the time of collapse in November 2022, Sinohope had $18.1 million worth of deposits stuck on FTX. The deal implies a recovery ratio of 108% of the firm’s assets.
Sinohope was materially impacted by the unreturned funds. On Dec. 13, 2023, the firm disclosed that it expects a loss of $280 million Hong Kong dollars ($35.86 million) for the first nine months of the year, an increase from $200 million Hong Kong dollars ($25.61 million) it lost during the same period in 2022.
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Author: Zhiyuan Sun
