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

Bankrupt FTX has filed a suit to retrieve astatine slightest $11 cardinal held successful a Crypto.com relationship linked to its sister company, Alameda Research, according to a Nov. 8 filing.

FTX alleges that earlier filing for bankruptcy, Alameda held an relationship astatine Crypto.com registered nether the sanction Ka Yu Tin, besides known arsenic Nicole Tin.

According to the firm, this signifier was emblematic for Alameda, which often opened accounts nether ammunition companies oregon employees’ names to disguise its trading activities. However, FTX claims Alameda funded and controlled the relationship successful question.

After Alameda declared bankruptcy, Crypto.com reportedly locked the relationship and denied FTX administrators’ requests to entree the funds contempt repeated attempts.

FTX further claims that Crypto.com’s refusal is based connected a mismatch betwixt the relationship holder’s names and those seeking to retrieve the funds. The defunct steadfast asserts that it has clarified the complexities of the lawsuit to Crypto.com and has provided court-approved documentation, yet Crypto.com reportedly remains unresponsive.

To fortify its case, FTX submitted an affidavit from Caroline Ellison, erstwhile CEO of Alameda Research, who stated that the Crypto.com accounts were so nether Alameda affiliates oregon associated individuals. Ellison affirmed that Alameda had ever considered the assets wrong these accounts belonging to the firm.

FTX concluded:

“The assets successful the Alameda Account, valued astatine astir $11.4 cardinal arsenic of the Petition Date, are not of inconsequential worth oregon payment to the property and indispensable beryllium returned to the Debtors.”

FTX holds Crypto.com’s assets

FTX administrators are present attempting to leverage claims from companies affiliated with Crypto.com’s genitor entities, Foris MT and Iron Block. These companies person filed claims against the failed speech for $18.4 cardinal and $237,800, which were held successful FTX.com accounts earlier the exchange’s collapse.

Considering this, FTX requests that Crypto.com’s claims beryllium deferred until the speech releases the Alameda assets successful its possession. The bankrupt speech is besides seeking betterment of the assets, ineligible costs, and further relief.

The station Bankrupt FTX targets Crypto.com successful $11 cardinal suit amid betterment effort appeared archetypal connected CryptoSlate.