FTX Sues KuCoin to Recover Over $50 Million in Withheld Assets

As a seasoned crypto investor with a decade-long journey through the digital asset landscape, I find myself closely following the latest developments between FTX and KuCoin. Having witnessed numerous twists and turns in this dynamic industry, my gut feeling tells me that this lawsuit might just be another chapter in the ongoing saga of cryptocurrency exchanges.


Alameda Research, a company linked to the failed cryptocurrency exchange FTX, has taken legal action against KuCoin in an attempt to recover over $50 million worth of assets that are currently on hold. This lawsuit was initiated on October 28 at the U.S. Bankruptcy Court for the District of Delaware.

As per the court records, KuCoin has been holding onto these funds since FTX went under in November 2022. Initially valued at approximately $28 million, the value of these assets has grown as a result of fluctuations in the market.

In the court case, FTX argues that KuCoin has unjustifiably declined to hand over the assets in the Account to the creditors, despite multiple requests. Alameda Research contends that this refusal to return the assets violates bankruptcy regulations. They are requesting the return of the funds, along with additional compensation for the delays.

According to reports, the assets in question are claimed by the FTX estate and are expected to be handed over to repay debtors. Yet, no reaction has been observed from KuCoin so far.

Following a previous settlement with Bybit that returned $228 million in assets, FTX is now aiming to apply these funds towards compensating their clients.

At the beginning of this month, a U.S. court gave the green light for FTX to wind down its business and begin returning funds to users. This plan aims to reimburse 98% of creditors with up to 119% of what they originally claimed, based on the value of assets at the time FTX went bankrupt.

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2024-10-29 19:48