According to Cointelegraph: The FTX estate, through its subsidiary Alameda Research, has taken legal action against crypto exchange KuCoin, aiming to recover assets now worth over $50 million. These assets were initially valued at $28 million but have appreciated due to market fluctuations. KuCoin has reportedly held these funds in a frozen state since FTX’s collapse in November 2022, according to a court filing on Oct. 28 in the United States Bankruptcy Court for the District of Delaware.
Despite repeated requests, KuCoin has allegedly refused to release the assets, leading Alameda to claim a violation of the Bankruptcy Code. The estate is seeking the return of the funds as well as potential damages for delays, to reallocate these assets toward creditor repayment.
This lawsuit follows a similar case where the FTX estate settled with Bybit, allowing for the withdrawal of $175 million in digital assets and the sale of $53 million in BIT tokens, adding $228 million to FTX’s repayment efforts.
