A Swiss investor is pursuing further legal action after winning over $2 million from KuCoin, which he claims has not settled the judgment.
The central issue in this case is whether a cryptocurrency exchange can label assets as abandoned if the user fails to withdraw them promptly after the token is delisted. A Seychelles court has ruled that KuCoin cannot make this classification, thus denying the exchange’s attempt to disclaim responsibility for the unwithdrawn tokens.
The court awarded the investor damages exceeding $2 million in a case where specific token details remain undisclosed. The controversy arises from KuCoin’s practice of setting deadlines for token withdrawals once a token is removed from its platform, effectively locking investors out of their assets if they miss the window.
In light of these events, it is worth noting that KuCoin has experienced regulatory challenges in the past. In 2023, the exchange reached a $22 million settlement with the New York Attorney General, stemming from allegations of operating without proper registration for New York residents. Furthermore, in early 2025, KuCoin pleaded guilty to a charge related to violations of money transmission laws and anti-money laundering regulations.
The exchange operates through various corporate entities in jurisdictions like Seychelles and Singapore. This ruling carries implications beyond this specific case. Many significant exchanges have similar abandonment clauses in their terms of service. A court in Seychelles dismissing this defense could set a precedent for other investors, providing a basis for them to challenge similar situations.
While media coverage has been sparse, the implications of this case may resonate in broader discussions regarding investor rights in the cryptocurrency space. The Swiss investor’s determination to pursue further legal action reflects the need for accountability in the rapidly evolving landscape of crypto exchanges. A judgment that remains uncollected is not merely a legal victory but a reminder of the challenges faced by investors in safeguarding their digital assets.