The blockchain firm Alameda Research has filed legal complaints against cryptocurrency exchanges KuCoin and Crypto.com in an effort to recover millions of dollars in locked funds. The complaints come amid an ongoing struggle to recover funds after the collapse of FTX, a major cryptocurrency exchange.
Alameda Research claims that they have been unable to access or recover millions of dollars worth of assets that are currently locked on both KuCoin and Crypto.com. These assets include cryptocurrencies, tokens, and other digital assets. The company believes that KuCoin and Crypto.com are holding these assets unjustly and are not cooperating in the recovery process.
The legal action comes as FTX, which filed for bankruptcy protection in November 2022, prepares to repay its users. The exchange’s creditors are expected to receive around 30 cents on the dollar, which has led to increased pressure on cryptocurrency exchanges to help recover any lost funds. Alameda Research has requested that KuCoin and Crypto.com return the locked funds to enable FTX to repay its users.
The legal complaints filed against the exchanges claim that they are either refusing to cooperate or are not making any real effort to recover the funds. In addition to the legal action against KuCoin and Crypto.com, Alameda Research has also filed a complaint against FTX’s founder, Sam Bankman-Fried, over similar issues.
The legal complaints against both KuCoin and Crypto.com are expected to be ongoing as the recovery process continues. This situation highlights the challenges faced by cryptocurrency exchanges and investors in the aftermath of the FTX collapse. The industry is still grappling with the consequences of the exchange’s failure, and many investors and companies are struggling to recover their losses.
In summary, Alameda Research has filed legal complaints against KuCoin and Crypto.com in an attempt to recover millions of dollars in locked funds. The legal action comes as FTX prepares to repay its users, and the recovery process continues to be challenging for cryptocurrency exchanges and investors.
