As part of its ongoing bankruptcy case, FTX\u2019s affiliated firm, Alameda Research, has filed a lawsuit to reclaim over $11 million in funds held in a Crypto.com account. This account, linked to FTX\u2019s 2022 bankruptcy filing, has been frozen, and Alameda is now seeking a court order to release the locked assets.<\/p>\n\n\n\n
In a filing submitted on November 7 to the U.S. Bankruptcy Court for the District of Delaware, Alameda requested that Crypto.com transfer approximately $11.4 million in account assets back to the debtors. This account, initially opened under the name Ka Yu Tin, was frozen by Crypto.com following FTX’s bankruptcy filing, and Alameda has since claimed that the exchange has \u201cwrongfully withheld\u201d these funds. The filing includes a declaration from former Alameda CEO Caroline Ellison, who confirmed that the account\u2019s assets belong to Alameda. This statement, made on November 1, came just before Ellison began her prison sentence in Connecticut due to her involvement in FTX\u2019s mishandling of customer funds.<\/p>\n\n\n\n
This lawsuit follows Alameda\u2019s recent legal move against crypto exchange KuCoin to access around $50 million in frozen assets. KuCoin had previously restricted the funds, citing \u201csuspicious activities.\u201d Together, these actions reflect Alameda and FTX’s commitment to recovering frozen funds held across various platforms as part of FTX’s bankruptcy process.<\/p>\n\n\n\n
FTX\u2019s bankruptcy, filed in November 2022, left creditors and investors in doubt over potential reimbursements. However, nearly two years into the proceedings, the bankruptcy court has approved a plan to reimburse 98% of users, amounting to roughly 119% of the value of their claimed assets at the time of the bankruptcy. This repayment plan will calculate reimbursements based on the 2022 crypto asset prices, disregarding potential gains in assets like Bitcoin. Although this plan is approved, the exact timeline for user repayments remains unclear.<\/p>\n\n\n\n
In parallel to the bankruptcy case, multiple criminal cases against former FTX executives have reached conclusions. Former Alameda CEO Caroline Ellison, ex-FTX CEO Sam Bankman-Fried, and former co-CEO of FTX Digital Markets, Ryan Salame, are all serving prison sentences. Nishad Singh, the former director of engineering, received a sentence of time served, while FTX co-founder Gary Wang\u2019s sentencing is scheduled for November 20.<\/p>\n","protected":false},"excerpt":{"rendered":"
As part of its ongoing bankruptcy case, FTX\u2019s affiliated firm, Alameda Research, has filed a lawsuit to reclaim over $11 million in funds held in a Crypto.com account. This account, linked to FTX\u2019s 2022 bankruptcy filing, has been frozen, and Alameda is now seeking a court order to release the locked assets. Alameda\u2019s Legal Actions […]<\/p>\n","protected":false},"author":13,"featured_media":3588,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[30,43],"tags":[],"class_list":["post-12205","post","type-post","status-publish","format-standard","has-post-thumbnail","category-exchange","category-general-news"],"acf":[],"yoast_head":"\n