Justin Sun sends $29.7 million of Ethereum to Huobi as the exchange faces trademark infringement lawsuit

Justin Sun has sent $29.7 million of Ethereum (ETH) to Huobi, with blockchain data showing the funds were sourced from the staking platform Lido Finance. The transfer comes a day after Huobi founder Li Lin filed a lawsuit against the exchange for trademark infringement.

Also Read: Huobi founder Li Lin sues the exchange in a Hong Kong court for using the “Huobi” trademark

Justin Sun fills Huobi’s wallet at the expense of Lido Finance

Justin Sun, the Tron founder and Global Advisor at Huobi Global, has transferred a huge sum of money to Huobi Exchange. Based on data from Arkham Intelligence, Sun transferred 15,815 ETH to the exchange via an intermediary address.

The withdrawal from Lido Finance and subsequent transfer to Huobi exchange have invigorated conversation on Crypto Twitter, with users speculating a deliberate plan to crash the rival exchange.

However, this was quickly put off with revelations that cryptocurrency wallets linked to Sun hold a remaining balance of up to 287,855 in Lido’s staked ether. Based on current rates of $1,885, this is approximately $545.6 million.

As reported, Huobi is the subject of a trademark lawsuit filed by founder Li Lin. Huobi Global Limited defended its position with claims that the exchange has the right to use its trademark in multiple jurisdictions globally and therefore had the mandate to use it freely. Nevertheless, the case will still go to court, with the financially struggling platform going against its own founder.

Accordingly, there is also speculation that Sun is showing support for the Huobi as it navigates financial troubles, which Sun attributed to market behavior and leveraged liquidation for Huobi Token’s 93% flash crash on March 9. At the time, he transferred $100 million USDC worth of liquidity fund created with the hopes of saving Huobi from the fate of collapsed FTX exchange. 

Beyond Sun’s position as Global Advisor at Huobi, the transfer also shows his confidence in the platform for crypto transactions. This is because transferring funds to an exchange normally precedes an intention to sell. Optimism about the platform, and its ticker by association, from a sensational executive like Sun, could bode well for Huobi Token and the exchange,  inspiring a new wave of bullishness around it.

As such, market players are waiting to see the impact of this move on the market and whether other investors will follow suit.

Meanwhile, Huobi Token (HT) price is down almost 2% in the last day but recording a 5% increase in 24-hour trading volume reaching $11 million. This suggests a recent rise in market activity around the token and presumably a growing interest in the altcoin among traders.