Alameda Research, a subsidiary of the bankrupt crypto exchange FTX, has sued KuCoin to get back more than $50 million in frozen assets. The lawsuit was filed on October 28 in the U.S. Bankruptcy Court for the District of Delaware.
According to the court documents, KuCoin has kept these funds locked since FTX collapsed in November 2022. The assets were initially worth about $28 million but have now increased in value due to changes in the market.
In the lawsuit, FTX claims, “KuCoin has without justification refused to turn over the assets in the Account to the Debtors, despite numerous requests.” Alameda Research believes that KuCoin’s refusal to give back the assets breaks bankruptcy laws. They are asking for the funds to be returned, plus extra money for the delays.
The assets are said to belong to the FTX estate and should be returned to help pay back creditors. However, there hasn’t been any response from KuCoin as of now.
This legal action comes after FTX recently settled another case with Bybit, where they recovered $228 million in assets. FTX is working to use this money to pay back customers.
Earlier this month, a U.S. judge approved FTX’s plan to end its operations and start paying back users. The plan promises to pay back 98% of creditors up to 119% of what they claimed, based on asset values at the time of FTX’s collapse.
