FTX continues to recover funds! Alameda sues Crypto.com and seeks to recover $11 million.

The bankruptcy case of FTX is still ongoing with the pursuit of funds. Recently, sister company Alameda Research sued the cryptocurrency exchange Crypto.com to recover hundreds of millions of dollars in frozen crypto assets at Crypto.com.

Alameda demands $11 million, accuses Crypto.com of unjust refusal to repay

According to bankruptcy documents, Alameda filed a lawsuit against Crypto.com on 11/7, seeking repayment of at least $11 million. Earlier, this fund was locked by Crypto.com in an account named Ka Yu Tin after FTX filed for bankruptcy. Alameda stated that they have repeatedly requested Crypto.com to cooperate and release the funds in the account since the bankruptcy of FTX, but have been refused.

The documents also include testimony from former Alameda CEO Caroline Ellison. Ellison told the court on 11/1 that the funds in the Ka Yu Tin account do indeed belong to Alameda.

Bankruptcy and criminal cases nearing conclusion, users expected to receive repayment

Since the bankruptcy of FTX in November 2022, many users and creditors have been concerned about whether they can recover their full funds. After multiple lawsuits over the past two years, the U.S. prosecutors have approved FTX's restructuring plan, and 98% of FTX creditors will receive approximately 119% of their allowed claim amount within 60 days of the plan taking effect. While the appreciation from the fluctuation of cryptocurrency prices is not included in the compensation, and the specific repayment date is yet to be determined, it still brings hope to some victims.

Several top executives related to FTX and Alameda have been convicted and detained, former CEO SBF, former Alameda CEO Ellison, and former FTX co-CEO Ryan Salame are currently serving sentences, while former engineering chief Nishad Singh received probation. As for FTX co-founder Gary Wang, his sentencing is scheduled for 11/20, where he will seek leniency.

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