FTX sues KuCoin over $50 million

Alameda Research, a part of the now-defunct cryptocurrency exchange FTX, has sued KuCoin to recover more than $50 million in locked assets.

According to a filing dated October 28, cryptocurrency exchange KuCoin has frozen the funds after FTX’s demise in November 2022. The complaint was filed with the United States Bankruptcy Court for the District of Delaware, which oversees FTX’s Chapter 11 case.

The petition claims that KuCoin has reportedly failed to provide the funds amid numerous conversations. The assets, originally valued at $28 million, are now worth over $50 million due to market fluctuations. According to the statement, “KuCoin has declined to give the debtors access to the assets in the account,

Alameda contends that KuCoin violated the Bankruptcy Code by refusing to disclose the assets, the company is requesting the money back and possible damages for the delays. According to the complaint, the money should be returned to creditors for repayment because it is part of the FTX estate.

The FTX bankruptcy estate also settled a similar action against the Bybit exchange. According to a filing on October 24, the agreement asks for the withdrawal of $175 million in digital assets held on Bybit and the transfer of more than $53 million worth of BIT tokens to Mirana Corp, the Bybit exchange’s investment unit. The agreement will add $228 million to FTX’s repayment efforts.

FTX  filed a $1 billion lawsuit against Bybit and Mirana in November 2023, alleging that the companies had used “VIP” access and a close relationship with FTX management to withdraw over $327 million in cash and digital assets before the exchange crashed.

ABOUT THE AUTHOR See More

Olumide Adesina

Financial Market Writer

Olumide Adesina is a French-born Nigerian financial writer. He tracks, analyzes, and reports changes in financial markets with over 15 years of working experience in investment trading.

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