Alameda Research, the investment firm closely associated with the now-bankrupt FTX exchange, has filed a lawsuit against cryptocurrency exchange KuCoin, seeking the return of $50 million in assets. These assets, originally valued at around $28 million, were frozen on KuCoin’s platform following the 2022 collapse of FTX. Alameda argues that the funds in question rightfully belong to FTX creditors and should be returned with additional compensation for the delay in access.
KuCoin, however, maintains that it acted in accordance with law enforcement recommendations, having observed suspicious account activity on the assets under its control. KuCoin claims it was responding to regulatory concerns and safeguarding the platform’s compliance with authorities investigating the FTX crisis. This legal action underscores the ongoing tensions between entities associated with FTX and other industry players holding its assets amid regulatory probes, as Alameda aims to recover maximum value for FTX’s creditors amidst the collapse’s fallout.
The case is the latest in a series of efforts by Alameda and FTX’s legal team to reclaim assets from various third parties, as they continue unraveling the complex network of investments and holdings tied to the FTX empire.