KuCoin Faces Legal Action Over Unpaid $2M Judgment for Delisted Tokens
- The Seychelles Supreme Court ruled on December 11, awarding Didier Rabl over $2 million in damages related to his approximately 21 million CoinPoker (CHP) tokens.
- KuCoin declared Rabl’s tokens “abandoned” after sending delisting notices in July 2021, but the court found this insufficient to negate his ownership rights.
- KuCoin’s Seychelles entities did not defend against the ruling, which may set a precedent for how exchanges handle delisted assets.
- A blockchain analysis identified a KuCoin address holding over $2 million worth of CHP tokens, representing about 5.9% of the total supply.
- The Seychelles Financial Services Authority confirmed receipt of the judgment and stated that KuCoin must cease operations in Seychelles following a rejected licensing application.
This case highlights critical issues regarding customer rights and asset management by cryptocurrency exchanges, particularly after delisting events. The court emphasized that unilateral actions by exchanges do not absolve them of their obligations to clients.
Didier Rabl has yet to receive any payment from KuCoin despite the court’s order for over $2 million in damages and is preparing further legal action. (Source)
