The worth of the assets was first estimated to be $28 million, but as a result of swings in the market, it has already surpassed $50 million. Since the fall of FTX in November 2022, KuCoin has used its authority to freeze the assets.
Attorneys from Alameda Research, a subsidiary of the defunct cryptocurrency exchange FTX, have filed a lawsuit against KuCoin in an effort to reclaim more than fifty million dollars' worth of assets that were locked up.
Since the collapse of FTX in November 2022, the money have been frozen by the cryptocurrency exchange KuCoin, as stated in a filing that was made on October 28. The United States Bankruptcy Court for the District of Delaware, which is the court that is overseeing FTX's Chapter 11 case, is the location where the complaint was submitted.
Alameda contends that KuCoin's inability to transfer the assets constitutes a breach of the Bankruptcy Code. The firm is seeking both the restoration of the monies as well as possible penalties for the delays that have occurred. According to the petition, the money are the property of the FTX estate and need to be restored to the creditors for the purpose of repayment.
In an email sent to Cointelegraph, KuCoin provided an explanation for the freezing of the cash, stating that the "identification of suspicious activities" was the explanation. It has been reported that the exchange has made "multiple attempts to contact the account holders directly in order to resolve" the issue being discussed.
Recently, the bankruptcy estate of FTX reached a settlement with the Bybit exchange about a claim that was somewhat similar. According to a document that was made on October 24th, the deal involves the sale of almost $53 million worth of BIT tokens to Mirana Corp, which is an investment branch of the Bybit exchange. Additionally, the agreement includes the withdrawal of digital assets that are stored on Bybit that are valued at $175 million. Because of the settlement, FTX's attempts to repay the debt would increase by $228 million.
The defunct exchange first filed a lawsuit against Bybit and Mirana in November 2023, stating that the firms utilized "VIP" access and a strong connection with FTX management to take around $327 million in digital assets and cash prior to the collapse of the exchange. The case was initially filed for a total of one billion dollars.
On October 7, a bankruptcy court in the United States gave approval to the liquidation plan that FTX had submitted, which enabled the firm to begin compensating its consumers and wind down its operations.
