A Swiss investor is preparing new legal action after cryptocurrency exchange KuCoin allegedly refused to honor a two-million-dollar court award. The dispute centers on whether exchanges can classify unwithdrawn tokens from delisted projects as abandoned property.
A Seychelles court ruled that KuCoin cannot seize assets simply because investors missed a withdrawal deadline. Despite this binding judgment, the exchange has reportedly withheld payment, prompting the investor to seek enforcement through additional litigation.
This ruling challenges standard industry terms of service that typically disclaim liability for assets left behind during delisting events. If upheld, the decision establishes a significant precedent for investor protection in jurisdictions where many major exchanges are incorporated.
KuCoin faces mounting regulatory pressure alongside this civil dispute. The exchange previously settled with the New York Attorney General for twenty-two million dollars and pleaded guilty to federal money transmission violations earlier this year.
The investor now argues that an uncollected judgment is merely an expensive piece of paper. This case tests whether offshore corporate structures can still shield exchanges from enforceable financial liabilities when courts reject their contractual defenses.