FTX recently took legal action against Crypto.com in an attempt to recover more than $11 million from an account linked to Alameda Research, a sister company of Crypto.com. The lawsuit, which was outlined in a court document dated Nov. 8, alleges that Alameda Research set up the account under the name Ka Yu Tin (also known as Nicole Tin) as part of a strategy to carry out cryptocurrency trades discreetly using shell companies and employee names.
Following Alameda Research’s declaration of bankruptcy, Crypto.com reportedly froze the account, preventing FTX administrators from accessing the funds. FTX claims that Crypto.com is withholding the funds due to a discrepancy between the registered account name and the representatives of the FTX bankruptcy estate. Despite providing court-approved documentation explaining the situation and asserting that the assets rightfully belong to FTX creditors, Crypto.com has not yet responded to the allegations.
In an effort to gain more leverage in the situation, FTX is also pursuing claims against Crypto.com’s parent companies, Foris MT and Iron Block. These companies have previously filed claims against FTX totaling $18.4 million and $237,800, respectively, for pre-bankruptcy assets held on FTX’s platform. FTX argues that any claims made by Foris MT and Iron Block should be put on hold until Crypto.com releases the disputed assets.
This legal battle is part of FTX’s ongoing campaign to recover funds from various exchanges, including Upbit. By taking legal action against Crypto.com and its parent companies, FTX is seeking to secure the funds it believes rightfully belong to its creditors.
In the fast-paced and often complex world of cryptocurrency trading, disputes like this one highlight the importance of clear and transparent financial practices. As the legal process unfolds, the outcome of this lawsuit could have significant implications for the involved parties and the broader crypto community. It serves as a reminder of the risks and challenges associated with digital asset trading and the importance of adhering to regulatory standards to prevent disputes and legal complications.
