WuBlockchain
A Swiss investor says KuCoin has yet to pay a Seychelles Supreme Court award exceeding $2 million tied to 21 million delisted CHP tokens, raising fresh questions about the exchange's willingness to honour legal obligations outside its home jurisdiction.
The court ruled in December 2025 that KuCoin could not classify unwithdrawn tokens as "abandoned" property — a legal argument the exchange had used to avoid compensating the investor. The Seychelles entities behind KuCoin were ordered to pay, but the exchange reportedly neither appeared in court nor has since responded to the allegations.
Why it matters
The ruling sets a meaningful precedent: exchanges cannot unilaterally deem unclaimed assets abandoned to escape liability. For the broader industry, this is a direct challenge to a practice that has quietly stripped retail and institutional investors of token holdings during delistings. The fact that KuCoin skipped the proceedings entirely compounds the reputational damage.
Market impact
KuCoin has already faced significant regulatory headwinds, including a 2024 guilty plea in the US on anti-money-laundering charges. Non-compliance with a court order in a jurisdiction where it is incorporated adds another layer of legal exposure. Investors holding assets on the exchange will likely watch this case closely as a signal of how KuCoin handles its outstanding obligations.
Frequently asked questions
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What did the Seychelles Supreme Court rule about KuCoin's "abandoned token" defence?
The court ruled in December 2025 that KuCoin could not treat unwithdrawn tokens as abandoned property and ordered the exchange's Seychelles entities to pay the Swiss investor over $2 million in compensation for 21 million delisted CHP tokens.
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Why is KuCoin's non-payment of the court award significant for other crypto investors?
The ruling challenges a widespread industry practice of classifying unclaimed tokens as abandoned during delistings. If exchanges can ignore such court orders, investors holding assets on centralised platforms face meaningful recovery risk when tokens are removed.
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What other legal trouble has KuCoin faced recently?
KuCoin pleaded guilty to anti-money-laundering violations in the United States in 2024. Defying a court order in the Seychelles, where it is incorporated, adds a further layer of legal and reputational exposure for the exchange.
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