FTX sues KuCoin to recover $50 million in withheld assets News ▸ FTX ▸ Bankruptcy
FTX sues KuCoin to recover $50 million in withheld assets
FTX said ever efforts to recover the funds from KuCoin was futile.
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Updated: Oct. 29, 2024 at 1:20 pm UTC
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Bankrupt crypto exchange FTX has filed a lawsuit to recover over $50 million in assets allegedly withheld by KuCoin, according to court documents filed on Oct. 28.
The assets were reportedly held in a KuCoin account belonging to the now-defunct Alameda Research, which filed for Chapter 11 bankruptcy in November 2022.
FTX’s allegation
In its lawsuit, FTX claimed that KuCoin locked access to these unnamed assets shortly after the bankruptcy proceedings began. At the time, the account held assets valued at around $30 million, rendering the bankrupt firm’s management team unable to access them.
Despite repeated requests—including direct communications with KuCoin’s CEO and legal representatives—FTX noted that KuCoin has refused to release the assets.
FTX stated:
“Notwithstanding further follow-ups to KuCoin and its in-house and outside legal teams, KuCoin has continued to refuse to turn over the Debtors’ assets or even to meaningfully engage with the Debtors regarding their requests.”
FTX claimed that the value of the locked assets has since grown to over $50 million. This claim is unsurprising, considering the sharp rise in crypto prices since 2022. For example, Bitcoin, which traded at under $20,000 in 2022, recently surpassed the $70,000 mark.
So, through this legal process, FTX aims to secure the return of these assets as part of its larger goal of supporting asset recovery for creditors and users.
This development follows FTX’s recent $228 million settlement with the crypto exchange Bybit and its affiliates. Additionally, FTX’s efforts align with its ongoing strategy to wind down operations and distribute assets. Earlier this month, FTX received court approval for a reorganization plan aimed at returning at least $12.6 billion to customers with frozen digital assets on the platform.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
