Cryptocurrency NewsFTX Sues Crypto.com to Reclaim $11M Tied to Alameda Research

FTX Sues Crypto.com to Reclaim $11M Tied to Alameda Research

FTX Seeks Recovery of Frozen Funds Amid Complex Bankruptcy Case
In a recent lawsuit, cryptocurrency exchange FTX is seeking to reclaim more than $11 million from an account on Crypto.com allegedly controlled by Alameda Research, its sister company. Filed in court on Nov. 8 and obtained by crypto.news, the suit accuses Alameda of using an account registered under Ka Yu Tin, also known as Nicole Tin, to conduct trades discreetly through shell companies and employee names.

The funds were frozen by Crypto.com after Alameda’s bankruptcy filing, blocking FTX administrators from retrieving the assets. According to FTX, Crypto.com’s refusal to release the funds stems from a discrepancy between the registered account name and the official representatives overseeing FTX’s bankruptcy estate.

To support its claim, FTX has provided court-approved documents clarifying the account’s ownership and affirming that these assets should benefit FTX creditors. However, Crypto.com has not responded to these filings.

FTX Targets Parent Companies Foris MT and Iron Block
FTX is also pressing claims against Crypto.com’s parent companies, Foris MT and Iron Block. The firms have claimed $18.4 million and $237,800, respectively, against FTX, tied to assets held on FTX’s platform prior to its bankruptcy. FTX contends that any claims from these entities should be paused until Crypto.com releases the disputed funds.

This case marks part of FTX’s broader effort to recover assets from exchanges globally, including platforms like Upbit, as it seeks to maximize creditor returns in its complex bankruptcy proceedings.

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