Bankrupt FTX targets Crypto.com in $11 million lawsuit amid recovery effort

Share This Post

Bankrupt FTX has filed a lawsuit to recover at least $11 million held in a Crypto.com account linked to its sister company, Alameda Research, according to a Nov. 8 filing.

FTX alleges that before filing for bankruptcy, Alameda held an account at Crypto.com registered under the name Ka Yu Tin, also known as Nicole Tin.

According to the firm, this practice was typical for Alameda, which often opened accounts under shell companies or employees’ names to mask its trading activities. However, FTX claims Alameda funded and controlled the account in question.

After Alameda declared bankruptcy, Crypto.com reportedly locked the account and denied FTX administrators’ requests to access the funds despite repeated attempts.

FTX further claims that Crypto.com’s refusal is based on a mismatch between the account holder’s names and those seeking to recover the funds. The defunct firm asserts that it has clarified the complexities of the case to Crypto.com and has provided court-approved documentation, yet Crypto.com reportedly remains unresponsive.

To strengthen its case, FTX submitted an affidavit from Caroline Ellison, former CEO of Alameda Research, who stated that the Crypto.com accounts were indeed under Alameda affiliates or associated individuals. Ellison affirmed that Alameda had always considered the assets within these accounts belonging to the firm.

FTX concluded:

“The assets in the Alameda Account, valued at approximately $11.4 million as of the Petition Date, are not of inconsequential value or benefit to the estate and must be returned to the Debtors.”

FTX holds Crypto.com’s assets

FTX administrators are now attempting to leverage claims from companies affiliated with Crypto.com’s parent entities, Foris MT and Iron Block. These companies have filed claims against the failed exchange for $18.4 million and $237,800, which were held in FTX.com accounts before the exchange’s collapse.

Considering this, FTX requests that Crypto.com’s claims be deferred until the exchange releases the Alameda assets in its possession. The bankrupt exchange is also seeking recovery of the assets, legal costs, and additional relief.

The post Bankrupt FTX targets Crypto.com in $11 million lawsuit amid recovery effort appeared first on CryptoSlate.

Read Entire Article
spot_img
- Advertisement -spot_img

Related Posts

Latam Insights: El Salvador’s Bitcoin Debt Idea, Milei’s MAGA

Welcome to Latam Insights, a compendium of the most relevant crypto and economic news from Latin America over the past week In this issue, Max Keiser floats an idea to allow El Salvador to acquire

XRP Below $1? Not Happening, Claims Millionaire Analyst

Ripple’s XRP has traded below the $1 level for nearly three years, affected primarily by the cases filed by the US Securities and Exchange Commission (SEC) Even during the mini bull run immediately

Howard Lutnick’s Firm, Cantor Fitzgerald To Work With Tether For $2B Project

The post Howard Lutnick’s Firm, Cantor Fitzgerald To Work With Tether For $2B Project appeared first on Coinpedia Fintech News As per the latest Bloomberg report, Financial services firm Cantor

As BTC Approaches $100K, Tether mints an additional $3 billion in USDT Tokens

The post As BTC Approaches $100K, Tether mints an additional $3 billion in USDT Tokens appeared first on Coinpedia Fintech News As Bitcoin approached the $100,000 price level, Stablecoin issuer

$495M Worth Crypto Liquidated In The Past 24 Hours Amid Market Correction!

The post $495M Worth Crypto Liquidated In The Past 24 Hours Amid Market Correction! appeared first on Coinpedia Fintech News Bitcoin plunged to the $95,000 level after failing to touch $100,000 on

BTC Slips To $96K, Liquidations Near $500M; Why Is Bitcoin Dropping?

The post BTC Slips To $96K, Liquidations Near $500M; Why Is Bitcoin Dropping appeared first on Coinpedia Fintech News This bull season, Bitcoin has seen one of the biggest price pumps in its history