FTX has filed a lawsuit aiming to recover over $11 million from a Crypto.com account allegedly controlled by Alameda Research.
Circumstances of the lawsuit
According to the court document dated November 8, the lawsuit alleges that Alameda opened the account under the name Ka Yu Tin (also known as Nicole Tin) as part of a practice of using shell companies for crypto trading. After Alameda declared bankruptcy, Crypto.com froze the account, blocking FTX administrators from accessing the funds. FTX argues that Crypto.com refuses to release the funds due to a mismatch between the registered account name and the representatives of the FTX bankruptcy estate.
Role of Foris MT and Iron Block
To increase leverage, FTX is pursuing claims against Crypto.com’s parent companies, Foris MT and Iron Block. These companies have filed claims of $18.4 million and $237,800, respectively, against FTX over pre-bankruptcy assets held on FTX’s platform. FTX argues that any claims made by these entities should be deferred until Crypto.com releases the disputed assets.
Broader efforts to reclaim funds
This lawsuit is part of FTX's broader efforts to reclaim funds from multiple exchanges, including Upbit.
FTX continues active legal actions to recover assets, hoping to restore substantial sums through the judicial process.
