As a seasoned crypto investor with a few battle scars to show for it, I’ve learned to expect the unexpected in this wild and volatile market. The latest development between Alameda Research and KuCoin, two names that have become all too familiar in recent times, is just another chapter in this never-ending crypto saga.
In simpler terms, when it comes to the failed cryptocurrency exchange FTX’s subsidiary, Alameda Research, they’ve taken a step towards legality by filing a lawsuit against KuCoin in an attempt to retrieve approximately $50 million worth of assets that are currently being held.
As an analyst, I’ve learned that my funds have been held by crypto exchange KuCoin since the fall of FTX, which occurred in November 2022. A grievance concerning this matter was recently submitted to the United States Bankruptcy Court for the District of Delaware – the court presiding over FTX’s Chapter 11 proceedings.
The filing claims that KuCoin has refused to release the assets despite several communications. The assets were originally valued at $28 million but now exceed $50 million due to market fluctuations. According to the document:
“KuCoin has without justification refused to turn over the assets in the Account to the Debtors, despite numerous requests.”
Alameda contends that KuCoin’s refusal to distribute the assets is a breach of the Bankruptcy Law, and they are demanding the return of the money as well as compensation for the hold-ups. The court filing states that these funds are part of the FTX estate and ought to be returned to creditors to settle their debts.
CryptoMoon reached out to KuCoin but has not received an immediate response.
The FTX bankruptcy estate recently settled a similar lawsuit against the Bybit exchange. According to an Oct. 24 filing, the agreement includes the withdrawal of $175 million in digital assets held on Bybit and the sale of nearly $53 million in BIT tokens to Mirana Corp — an investment division of the Bybit exchange. The settlement will add $228 million to FTX’s repayment efforts.
In November 2023, an insolvent cryptocurrency exchange initially brought forward a lawsuit of one billion dollars against Bybit and Mirana, accusing them of exploiting “VIP” privileges and their close ties with FTX executives to withdraw approximately 327 million dollars in digital assets and cash before the exchange suffered its downfall.
On October 7th, a U.S. bankruptcy court granted approval for FTX’s liquidation scheme. This move enables the company to close its business activities and initiate the process of returning funds to its users.
This plan guarantees that creditors will receive up to 119 cents for every dollar they are owed, for approximately 98% of the claims. However, the repayment is determined by the worth of the assets when FTX filed bankruptcy in November 2022, not their current market value.
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2024-10-29 18:30