FTX Estate Sues KuCoin to Recover Over $50 Million in Locked Assets

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.