The FTX bankruptcy case continues to escalate, and on October 28, FTX formally sued cryptocurrency exchange KuCoin, claiming violation of bankruptcy law and demanding the release of the $28 million in cryptocurrency assets frozen after FTX's collapse in 2022. With market fluctuations, these assets have now appreciated to over $50 million.
FTX's entanglement with KuCoin after bankruptcy, from $28 million to $50 million.
Since FTX collapsed in November 2022, trading firm Alameda Research has been attempting to recover assets stored at various cryptocurrency exchanges, including KuCoin. At that time, KuCoin noticed something was amiss and immediately froze $28 million of FTX's assets. With market price fluctuations, that $28 million has now increased to over $50 million.
KuCoin alleges suspicious account activity, immediately freezing assets.
In response, KuCoin stated that the reason for freezing the assets was due to "suspicious activity detected," and claimed to have attempted to contact the account holder multiple times to resolve the issue but received no response. Therefore, KuCoin announced it would "strictly adhere to the instructions of law enforcement to ensure that user assets are not misappropriated."
The situation escalates as Alameda accuses KuCoin of illegally refusing to return assets.
On October 28 of this year, Alameda Research officially filed a lawsuit against KuCoin in the U.S. Delaware bankruptcy court, claiming "KuCoin violated bankruptcy law" and demanding the return of the frozen $28 million in assets. The lawsuit explicitly states that KuCoin has repeatedly refused to return the assets without reason, and requests that KuCoin immediately return the assets and compensate for the delayed losses. Alameda emphasized that these funds belong to the "FTX bankruptcy reorganization fund" and must be used to repay creditors.
FTX successfully recovered $228 million from Bybit.
According to previous reports, the FTX bankruptcy reorganization team recently reached a settlement agreement with cryptocurrency exchange Bybit for up to $228 million. This settlement agreement allows FTX to withdraw digital assets worth $175 million from Bybit and sell approximately $53 million worth of BIT tokens to Mirana Corp (Bybit's investment division).
However, the settlement agreement still requires approval from the federal court, with a hearing scheduled for November 20 at 2 PM Eastern Time to approve the agreement. If passed, this settlement amount will be used to repay former FTX users and creditors.
(Bankruptcy court rules! FTX will return 119% of the claim amount within 60 days)
This article discusses the FTX bankruptcy case: Alameda sues KuCoin for the return of $50 million in cryptocurrency assets, first appearing in Chain News ABMedia.