The estate of the bankrupt cryptocurrency exchange FTX has filed a lawsuit against the crypto exchange KuCoin to recover over $50 million in frozen assets.
According to court documents, the assets, originally valued at $28 million, have increased in value due to market fluctuations. KuCoin has refused to release these funds despite repeated requests.
The lawsuit, filed in the United States Bankruptcy Court for the District of Delaware, alleges that KuCoin’s refusal to release the assets violates bankruptcy law. The FTX estate is seeking both the return of the funds and potential damages for the delay.
This legal action follows a similar settlement with the Bybit exchange, where FTX recovered over $228 million in digital assets and cash. The settlement with Bybit was reached after FTX filed a $1 billion lawsuit against the exchange, alleging misuse of customer funds.
FTX’s bankruptcy proceedings are ongoing, with a recent court approval of a liquidation plan that aims to repay up to 119% of the claimed value to 98% of creditors. However, the repayment will be based on the value of assets at the time of FTX’s collapse in November 2022.