FTX, a bankrupt crypto exchange, has taken legal action against KuCoin in an attempt to recover more than $50 million in assets that were allegedly withheld by the exchange. According to court documents filed on Oct. 28, FTX claims that KuCoin locked access to these assets, which were held in an account belonging to the now-defunct Alameda Research.
The assets, valued at around $30 million at the time they were locked, have since grown to over $50 million due to the increase in crypto prices. Despite repeated requests and communications with KuCoin’s CEO and legal representatives, FTX has been unable to recover the assets.
FTX’s lawsuit against KuCoin is part of its larger strategy to support asset recovery for creditors and users. This legal action comes on the heels of FTX’s $228 million settlement with the crypto exchange Bybit and its affiliates, as well as its efforts to wind down operations and distribute assets to customers.
Earlier this month, FTX received court approval for a reorganization plan aimed at returning at least $12.6 billion to customers with frozen digital assets on the platform. This latest development underscores FTX’s commitment to recovering assets for its stakeholders and ensuring transparency in its operations.
