FTX Estate Sues KuCoin to Recover Over $50 Million in Locked Assets
AI Summary
FTX Estate has filed a lawsuit against KuCoin to recover $50 million in frozen assets, alleging bankruptcy law violations. The legal action, similar to the Bybit settlement, aims to recover funds to pay off creditors.
According to Cointelegraph: FTX, through its subsidiary Alameda Research, has taken legal action against cryptocurrency exchange KuCoin, seeking to recover assets now worth over $50 million. These assets were initially valued at $28 million but have risen due to market volatility. KuCoin has reportedly kept these funds in a frozen state since FTX collapsed in November 2022, according to an Oct. 28 court filing in the U.S. Bankruptcy Court for the District of Delaware.
Despite repeated requests, KuCoin has allegedly refused to release the assets, prompting Alameda to claim bankruptcy law violations. The estate is seeking the return of the funds, plus potential damages for delay, to reallocate those assets to repay creditors.
This lawsuit follows a similar case where the FTX estate reached a settlement with Bybit, allowing the withdrawal of $175 million in digital assets and the sale of $53 million in BIT tokens, adding $228 million to FTX’s repayment efforts.
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