FTX Sues Crypto.com To Recover Millions Linked To Alameda Research

FTX has filed a lawsuit to recover over $11 million from a Crypto.com account allegedly controlled by its sister company, Alameda Research.

The lawsuit, detailed in a court document dated Nov. 8 and obtained by crypto.news, alleges that Alameda opened the account under the name Ka Yu Tin (also known as Nicole Tin) as part of a broader practice of using shell companies and employee names to conduct crypto trades discreetly.

After Alameda declared bankruptcy, Crypto.com reportedly 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.

FTX has provided court-approved documents explaining the account’s complexities and asserting that the assets belong to FTX creditors, but according to the filing, Crypto.com has yet to respond.

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.

This lawsuit follows FTX’s broader efforts to reclaim funds from multiple exchanges, including Upbit.