PANews reported on November 8 that according to CryptoSlate, according to documents on November 8, the bankrupt FTX has filed a lawsuit to recover at least $11 million from the Crypto.com account associated with its sister company Alameda Research. FTX claims that before filing for bankruptcy, Alameda registered an account on Crypto.com under the name of Ka Yu Tin (also known as Nicole Tin). According to the company, this practice is common among Alameda, which often opens accounts in the name of shell companies or employees to cover up its trading activities. However, FTX claims that Alameda provides funds for the account and controls it.
After Alameda declared bankruptcy, Crypto.com reportedly locked the account and denied FTX administrators’ requests to access the funds despite multiple attempts. FTX further claimed that Crypto.com’s denial was based on the account holder’s name not matching the name of the person seeking to recover the funds. FTX claims that it has clarified the complexities of the case to Crypto.com and provided court-approved documents, but Crypto.com has reportedly still not responded.
FTX administrators are currently trying to take advantage of claims filed by affiliates of Crypto.com's parent entity Foris MT and Iron Block. These companies have filed claims against FTX for $18.4 million and $237,800, which were held in FTX.com accounts before the exchange collapsed. In view of this, FTX requested a delay in processing Crypto.com's claims until the exchange releases the Alameda assets it holds. FTX also requested the recovery of assets, legal fees and other relief measures.
