Alameda Research, one of the sister firms of the defunct crypto exchange FTX, is taking action to recover more than $11 million from an account on Crypto.com, established in 2022.
Alameda Research's Asset Recovery Claims
On November 7, a complaint was filed in the United States Bankruptcy Court for the District of Delaware by Alameda, aiming to recover at least $11.4 million in assets from a Crypto.com account. The firm requests the court to order the turnover of assets to the debtors, which are not deemed 'of inconsequential value.'
Situation with the Frozen Crypto.com Account
Alameda claims to have opened an account under the name Ka Yu Tin prior to FTX's bankruptcy declaration in 2022. According to Alameda, Crypto.com locked the account after FTX filed for Chapter 11 and has refused cooperation with the debtors, wrongfully withholding the firm's property.
Progress of Bankruptcy and Criminal Cases
FTX's bankruptcy proceedings began in November 2022, and after roughly two years of court actions, a judge approved a plan for FTX debtors to repay 98% of users approximately 119% of their claimed account value. In criminal cases, three executives tied to FTX and Alameda are already imprisoned, with FTX co-founder Gary Wang awaiting sentencing on November 20.
The FTX bankruptcy and its related criminal matters still have a long path ahead, with various parties continuing to fight for asset recovery.
