Legal troubles are mounting for the exchange KuCoin following allegations that it has failed to settle a court-mandated $2 million judgment. The dispute centers on the platform’s classification of delisted tokens as "abandoned" property, a practice a Seychelles court recently deemed unlawful.
A Swiss investor, who originally brought the case forward, reports that the exchange has yet to distribute the awarded funds. Despite the judicial ruling, the plaintiff asserts that the firm remains in non-compliance, leaving the investor to seek additional legal avenues to secure the assets.
Key Developments:
- A Seychelles court ruled that KuCoin cannot unilaterally seize unwithdrawn tokens.
- The exchange has been ordered to pay over $2 million to the aggrieved party.
- The investor plans to initiate further legal action to enforce the judgment.
This case highlights the growing friction between centralized exchanges and users regarding the custody of digital assets post-delisting. Industry observers are closely monitoring the situation, as it could set a critical precedent for asset recovery rights in offshore jurisdictions.
