FTX Tries to Reclaim $11M from Alameda via Crypto.com

Alameda Research is fighting to get back more than $11 million from Crypto.com. The funds were locked in an account linked to the company after the collapse of FTX. 

This is just another chapter in the long saga of FTX’s bankruptcy. Creditors are still hoping to recover their losses, and now Alameda is taking legal steps to reclaim what belongs to them.

A Legal Battle for Frozen Funds

On November 7, Alameda filed a complaint in the United States Bankruptcy Court. The company seeks to recover at least $11.4 million held in a Crypto.com account. This account was opened before FTX’s downfall in 2022 under the name Ka Yu Tin. 

After FTX filed for bankruptcy, Crypto.com locked the account, leaving Alameda unable to access the funds. Alameda claims that Crypto.com is illegally withholding these assets and refuses to cooperate.

The filing includes a statement from Caroline Ellison, former CEO of Alameda. She is currently serving time in prison for her role in FTX’s collapse. Ellison confirmed that the $11.4 million belongs to Alameda. 

The Bigger Picture of FTX’s Bankruptcy

This legal action against Crypto.com is not an isolated event. In October, Alameda filed a similar complaint against KuCoin to recover around $50 million in frozen assets. FTX’s bankruptcy case continues to unfold in court, with some hopeful signs for investors. 

A judge approved a plan that would allow FTX to repay 98% of users, returning more than the value of their claimed assets. However, when reimbursements will begin remains uncertain.

As the case progresses, Alameda’s fight to recover these assets may help define how quickly investors can expect their funds. The outcome could also impact how other frozen assets in the crypto world are handled.