Alameda Research, a division of FTX, has filed a lawsuit against cryptocurrency exchange KuCoin in an attempt to reclaim nearly $50 million in assets. The lawsuit claims that KuCoin has unfairly kept the assets since FTX’s demise in November 2022. The U.S. bankruptcy court for the District of Delaware received it on October 28.
Due to changes in the market, the assets’ initial $28 million value has grown to over $50 million. Alameda’s lawsuit accuses KuCoin of consistently refusing to deliver the necessary money for FTX’s ongoing bankruptcy repayment plans. Alameda requests the release of the assets as well as possible damages for the delays, claiming that this denial violates U.S. bankruptcy laws.
In response, KuCoin stated that they had frozen the assets due to suspicious activity and attempted to contact account holders to resolve the issue. KuCoin underlined its dedication to following the directives of regulatory bodies and preserving user asset security.
This lawsuit against KuCoin follows the recent settlement of a comparable dispute involving Bybit. Through asset sales and recoveries, FTX was able to secure $228 million under that agreement. A U.S. bankruptcy judge earlier this month approved FTX’s larger plan to sell off assets and pay back creditors, which includes these initiatives. Based on asset prices at the time of FTX’s collapse, the estate hopes to pay out up to 119% of claimed assets to almost all creditors under this plan.
