Alameda Research, a subsidiary of the bankrupt crypto exchange FTX, has filed a lawsuit against KuCoin to reclaim over $50 million in assets currently locked on the platform.
In an Oct. 28 filing with the United States Bankruptcy Court for the District of Delaware, handling FTX’s Chapter 11 case, Alameda stated that the funds were initially frozen by KuCoin following FTX’s collapse in November 2022. Although the assets were originally valued at $28 million, their worth has risen to over $50 million due to market fluctuations.
According to the filing, “KuCoin has without justification refused to turn over the assets in the Account to the Debtors, despite numerous requests.” Alameda argues that KuCoin’s refusal to release the funds violates the Bankruptcy Code, and it seeks both the return of the assets and damages for the delays. The filing emphasizes that the funds belong to the FTX estate and should be returned to creditors for repayment.
Cointelegraph reached out to KuCoin for comment but received no immediate response.
This lawsuit follows a recent settlement between the FTX bankruptcy estate and Bybit. According to an Oct. 24 filing, Bybit agreed to release $175 million in digital assets and to sell nearly $53 million in BIT tokens to Mirana Corp, an investment division of Bybit. This settlement adds $228 million to the funds available for FTX’s creditor repayments.
Previously, FTX had filed a $1 billion lawsuit against Bybit and Mirana in November 2023, alleging that they used “VIP” access and close ties with FTX executives to withdraw approximately $327 million in assets before FTX’s collapse.
On Oct. 7, a U.S. bankruptcy judge approved FTX’s liquidation plan, which permits the exchange to wind down operations and begin repaying creditors. The plan promises up to 119% of the original claimed value for 98% of creditors, based on asset values at the time of FTX’s November 2022 collapse.
FTX, once a major crypto exchange, filed for bankruptcy in November 2022 amid allegations of fraud, with Alameda Research at the center of claims related to the misuse of billions in customer funds.
