FTX sues KuCoin in $50M asset recovery effort amid bankruptcy proceedings

FTX has intensified its recovery campaign by suing KuCoin to reclaim over $50 million allegedly locked in an account tied to the bankrupt Alameda Research.

Despite several attempts to retrieve the funds through communications with KuCoin’s executive team and legal counsel, FTX claims KuCoin has remained uncooperative.

The conflict dates back to Alameda’s Chapter 11 filing in 2022 when assets in the KuCoin account were valued at around $30 million.

FTX asserts that this balance has since grown, reflecting rising crypto prices, and now surpasses $50 million.

This legal move follows a series of asset recovery actions taken by FTX to help creditors and investors, including a recent $228 million settlement with Bybit and a court-approved reorganization plan aimed at returning $12.6 billion to customers with frozen assets.