FTX Pursues $50 Million in Assets Allegedly Seized by KuCoin

The bankrupt cryptocurrency exchange FTX has initiated legal proceedings to reclaim over $50 million in assets that it alleges were wrongfully taken by KuCoin, as stated in court documents from October 28.

These assets, which were originally valued at around $30 million when FTX filed for bankruptcy in November 2022, are said to be held in an account belonging to FTX’s affiliate, Alameda Research.

FTX’s lawsuit claims that KuCoin denied access to these assets immediately after the bankruptcy declaration, despite multiple attempts by FTX representatives to negotiate with KuCoin’s executives and legal team.

The exchange asserts that KuCoin has not only refused to return the assets but has also failed to engage meaningfully on the issue.

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As cryptocurrency prices have risen since 2022, the value of these assets has reportedly increased to more than $50 million. Through this lawsuit, FTX seeks to recover these funds to enhance its recovery efforts for creditors and users.

This legal action comes on the heels of FTX’s recent $228 million settlement with Bybit and a court-approved reorganization plan aimed at recovering approximately $12.6 billion for customers with locked digital assets.

Alexander Stefanov