FTX Bankruptcy Case Continues: Alameda Sues KuCoin, Seeking to Recover $50 Million in Cryptocurrency Assets

The FTX bankruptcy case continues to escalate, with FTX officially filing a lawsuit against the cryptocurrency exchange KuCoin on 10/28, alleging violation of bankruptcy law and demanding the release of $28 million in frozen cryptocurrency assets from 2022 after FTX's closure. With market fluctuations, these assets have now appreciated to over $50 million.

FTX Bankruptcy Dispute with KuCoin, From $28 Million to $50 Million

Since the collapse of FTX in November 2022, trading institution Alameda Research has been attempting to recover assets held at major cryptocurrency exchanges, including KuCoin. When KuCoin noticed something amiss, they promptly froze FTX's $28 million assets. With market price fluctuations, the $28 million has now increased to over $50 million.

KuCoin Accuses Suspicious Account Activity, Freezes Assets Immediately

KuCoin responded by stating that the reason for freezing the assets was due to "suspicious activity" and mentioned they had made multiple attempts to contact the account holder to resolve the issue but received no response. Therefore, KuCoin declared that they would "strictly follow the instructions of law enforcement agencies to ensure that user assets are not misappropriated."

Situation Escalates, Alameda Accuses KuCoin of Illegally Refusing to Return Assets

On October 28 of this year, Alameda Research officially filed a lawsuit in the U.S. Bankruptcy Court in Delaware, citing "violation of bankruptcy law" against KuCoin and demanding the return of the frozen $28 million assets. The lawsuit explicitly stated that KuCoin had repeatedly refused to return the assets without cause and demanded immediate return of the assets as well as compensation for delayed losses. Alameda emphasized that these funds belong to the "FTX bankruptcy restructuring funds" and must be used to repay creditors.

FTX Successfully Recovers $228 Million from Bybit, Adding to Funds

According to previous reports, the FTX bankruptcy restructuring team recently reached a settlement agreement with the cryptocurrency exchange Bybit for up to $228 million. This settlement agreement allows FTX to withdraw $175 million worth of digital assets 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 2:00 p.m. EST on November 20. If approved, this settlement fund will be used to repay former FTX users and creditors.

Bankruptcy Court Finalizes Decision! FTX to Return 119% of Claims within 60 Days