Alameda Research has filed a lawsuit against KuCoin to recover over $50 million in locked assets for FTX’s debtors.
The lawsuit has been filed in the United States Bankruptcy Court for the District of Delaware, the same court where FTX filed for its bankruptcy proceedings.
FTX Debtors Frustrated Over KuCoin Relunctancy to Release the Funds
The lawsuit argues that KuCoin’s refusal to release these assets violates the US Bankruptcy Code. Since FTX’s collapse in November 2022, KuCoin has frozen access to the funds, initially valued at $28 million.
However, due to market fluctuations, the assets have since appreciated, now exceeding $50 million in worth.
Read More: FTX Collapse Explained – How Sam Bankman-Fried’s Empire Fell
According to the court filing on October 28, Alameda asserts that it has made several attempts to communicate with KuCoin, requesting the release of these assets. The funds in question are part of the FTX estate, and their return would contribute to paying back FTX’s creditors.
Despite multiple efforts, KuCoin has yet to respond publicly or act on these requests. The claim against KuCoin includes demands for the assets’ return and compensation for delays.
“On November 16, 2022, the now-CEO of the Debtors sent a letter to KuCoin’s CEO, copying KuCoin’s legal team, requesting that the assets in the Account be secured and seeking to coordinate the transfer of the assets in the Account to the Debtors. Despite repeated follow-ups from the Debtors over the next two months, including through outreach to numerous other KuCoin departments, KuCoin continued to ignore the Debtors’ requests,” as stated in the 22nd clause of the lawsuit.
The
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Author: Mohammad Shahid
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