According to a recent CryptoSlate report, Bankrupt crypto exchange FTX has filed a lawsuit to recover over $50 million in assets allegedly withheld by KuCoin, as stated in court documents submitted on October 28. These assets were reportedly held in a KuCoin account linked to Alameda Research, which filed for Chapter 11 bankruptcy in November 2022.

FTX claims that KuCoin restricted access to these assets shortly after bankruptcy proceedings began. Initially valued at around $30 million, the assets have since appreciated significantly due to rising cryptocurrency prices. For instance, Bitcoin, which was under $20,000 in 2022, has recently surpassed $70,000.

Despite multiple requests, including direct communications with KuCoin’s CEO and legal teams, FTX alleges that KuCoin has refused to release the assets. FTX stated, “Despite additional follow-ups, KuCoin has continued to deny access to the Debtors’ assets and has not engaged meaningfully with the Debtors regarding their requests.”

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