FTX sues Crypto.com to recover millions linked to Alameda Research

FTX has filed a lawsuit to get well over $11 million from a Crypto.com account allegedly managed by its sister firm, Alameda Analysis.

The lawsuit, detailed in a court docket doc dated Nov. 8 and obtained by crypto.information, alleges that Alameda opened the account beneath the identify Ka Yu Tin (also called Nicole Tin) as a part of a broader follow of utilizing shell corporations and worker names to conduct crypto trades discreetly.

After Alameda declared chapter, Crypto.com reportedly froze the account, blocking FTX directors from accessing the funds. 

FTX argues that Crypto.com refuses to launch the funds resulting from a mismatch between the registered account identify and the representatives of the FTX chapter property.

FTX has offered court-approved paperwork explaining the account’s complexities and asserting that the property belong to FTX collectors, however in accordance with the submitting, Crypto.com has but to reply.

Foris MT and Iron Block

To extend leverage, FTX is pursuing claims in opposition to Crypto.com’s dad or mum corporations, Foris MT and Iron Block. These corporations have filed claims of $18.4 million and $237,800, respectively, in opposition to FTX over pre-bankruptcy property held on FTX’s platform.

FTX argues that any claims made by these entities needs to be deferred till Crypto.com releases the disputed property.

This lawsuit follows FTX’s broader efforts to reclaim funds from a number of exchanges, together with Upbit.