The bankrupt exchange FTX has recently filed a lawsuit against Crypto.com to recover a large sum of money belonging to Alameda Research that was stuck on this exchange. According to documents from the U.S. Bankruptcy Court in the District of Delaware, FTX alleges that Crypto.com is holding $11.4 million of Alameda's money and refusing to return this amount.
FTX said that Alameda had an account at Crypto.com before the company filed for bankruptcy. Notably, this account was opened under the name Ka Yu Tin (also known as Nicole Tin), a former Alameda employee.
According to the records, Alameda often used the tactic of opening accounts on various trading platforms through "shell" companies and employees in order to conceal its trading strategy. However, FTX claims that this account was funded and managed by Alameda.
After Alameda Research went bankrupt, Crypto.com is said to have locked the account and refused to return the money, even though FTX has made multiple efforts to request the recovery of the assets.
"Although the Debtor has attempted to contact Crypto.com through various means, Crypto.com has not cooperated and continues to wrongfully hold the assets," the filing emphasized.
The reason for Crypto.com's refusal seems to be that the name on the account does not match any of the claimants. However, the FTX administrators claim they have clearly explained the complex situation to Crypto.com's representatives and provided court-approved documents, but still have not achieved a result.
Recently, FTX has also filed a lawsuit to recover more than $50 million in assets allegedly held by Kucoin, according to court documents filed on October 28.
