Ftx estate pursues Kucoin to reclaim USD 50 million in assets. The assets were initially valued at $28 million, but due to market swings, they have now topped $50 million. KuCoin has frozen the assets since November 2022, when FTX collapsed.
FTX Estate Pursues Kucoin |
FTX estate sues KuCoin to recover over $50M in assets
In an attempt to reclaim more than $50 million in locked assets, Alameda Research, a division of the defunct cryptocurrency exchange FTX, has filed a lawsuit against KuCoin.
Since FTX's demise in November 2022, the money has been frozen by cryptocurrency exchange KuCoin, according to a filing dated October 28. The United States Bankruptcy Court for the District of Delaware, which is in charge of FTX's Chapter 11 case, received the complaint.
Despite multiple discussions, KuCoin has allegedly refused to disclose the funds, according to the petition. Due to changes in the market, the assets, which were initially valued at $28 million, are now worth over $50 million. based on the document.
FTX estate sues KuCoin
Alameda contends that KuCoin violated the Bankruptcy Code by refusing to disclose the assets, and the company is requesting the money back as well as possible damages for the delays. According to the complaint, the money should be given back to creditors for repayment because it is part of the FTX estate.
A similar action against the Bybit exchange was recently settled by the FTX bankruptcy estate. The arrangement calls for the transfer of over $53 million worth of BIT tokens to Mirana Corp, the Bybit exchange's investment branch, and the withdrawal of $175 million in digital assets held on Bybit, according to a filing made on October 24. The deal will increase FTX's repayment efforts by $228 million.
In November 2023, the bankrupted exchange first sued Bybit and Mirana for $1 billion, claiming that the companies had taken out about $327 million in cash and digital assets prior to the collapse of the exchange by using "VIP" access and a tight relationship with FTX management.
On October 7, a US bankruptcy judge authorized FTX's liquidation plan, allowing the company to cease operations and begin compensating customers.
The proposal promises up to 119% of the stated value to 98% of creditors. The payback, however, is based on the asset value when FTX failed in November 2022, rather than current market pricing.
One of the top cryptocurrency exchanges was FTX. After fraud was exposed, it declared bankruptcy in November 2022. Many of the allegations against FTX have focused on its trading division, Alameda Research, which is accused of misusing billions of dollars in client cash.
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