FTX’s sister firm, Alameda Research wants, $11.4 million locked in a Crypto.com account to be released.
Defunct exchange FTX’s sister firm Alameda Research wants Crypto.com to unlock over $11 million tied to its frozen account on the platform. The funds have remained locked since FTX filed for bankruptcy after going bust in 2022.
Alameda filed a complaint with the United States Bankruptcy Court for the District of Delaware to reclaim “at least $11.4 million in debtor assets contained in a Crypto.com exchange account.” The filing revealed the nature of the account, mentioning, “The Alameda Account had originally been opened in the name of Ka Yu Tin (also known as Nicole Tin) using the email address of gbhl@genesisblockhk.com, but the Alameda Account was at all relevant times funded and controlled by, and used solely for the benefit of, Alameda.”
It also included a declaration from the ex-CEO of Alameda, Caroline Ellison, that the assets in the account were the property of the firm. “The assets in the Alameda Account, valued at approximately $11.4 million as of the Petition Date, are not of inconsequential value or benefit to the estate and must be returned to the Debtors,” it further stated. Ellison is currently serving her sentence in a Connecticut prison for her part in the FTX fiasco.
This is the latest attempt by FTX and Alameda to recover funds trapped in exchange accounts. Alameda filed another complaint in October to gain access to its once-active account on KuCoin and recover about $50 million worth of digital assets. The exchange froze that account after identifying suspicious activity.
FTX Repayments Will Come Soon to Creditors
FTX and entities controlled by it filed for bankruptcy in November 2022. Its creditors have had to wait since to reclaim their assets lost by the exchange’s mismanagement. Almost two years since, a judge approved a repayment plan brought by its bankruptcy estate, which aims to refund 118% of the lost assets to 98% of the creditors.
Objections to this plan have been raised by some creditors as it does not account for the value appreciation of the assets since 2022. Rather, the plan seeks to provide the fiat value of the assets when FTX filed for bankruptcy.
Thus far, three high-ranking executives from FTX have been sentenced to prison, including Ellison, FTX CEO Sam Bankman-Fried, and FTX Digital Markets co-CEO Ryan Salame. Nishad Singh, the exchange’s engineering lead, was released on time served recently. Co-founder Gary Wang’s hearing will occur on November 20.
