Alameda Research Targets KuCoin in $50 Million Asset Recovery

Tuesday, 29 October 2024, 11:25

FTX lawsuit highlights Alameda Research's efforts to reclaim over $50 million locked with KuCoin. The lawsuit claims KuCoin's actions violate US Bankruptcy Code, frustrating FTX's debtors seeking recovery.
Beincrypto
Alameda Research Targets KuCoin in $50 Million Asset Recovery

Background of the Lawsuit

Alameda Research has filed a lawsuit against KuCoin to recover over $50 million in locked assets related to FTX’s debtors. The lawsuit was submitted to the United States Bankruptcy Court for the District of Delaware, which also oversees FTX’s bankruptcy proceedings.

FTX Debtors Frustrated by KuCoin

This lawsuit arises from KuCoin's reluctance to release assets that were valued at $28 million at the time of FTX's collapse in November 2022.

  • Market fluctuations have increased the value of these assets to over $50 million.

On October 28, Alameda claimed that numerous attempts to communicate with KuCoin have been ignored.

Demand for Asset Recovery

Alameda asserts that the locked funds are part of the FTX estate and their return is essential for repaying FTX’s creditors. The lawsuit demands both the return of the assets and compensation for delays caused by KuCoin's inaction.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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