Court Challenges Exchange Asset Seizure
The Supreme Court of Seychelles has delivered a landmark ruling against KuCoin, declaring that the exchange cannot classify unwithdrawn tokens as “abandoned” property. The court ordered the platform to pay over $2 million to a Swiss investor, Didier Rabl, for failing to safeguard his assets.
- Total Award: 2,000,000 USDT plus damages
- Disputed Assets: 21,000,000 CHP tokens
- Jurisdiction: Supreme Court of Seychelles
The Legal Argument
The court found that KuCoin entities failed to provide adequate notice before delisting the CHP tokens. Because the original terms of service did not explicitly authorize the forfeiture of assets, the exchange remained legally obligated to honor withdrawal requests.
“A VASP’s unexplained failure to comply with a final Supreme Court order concerning customer assets sits uneasily with standards of integrity and respect for client property,” says Joshua Chu, a legal expert in the Web3 space.
FAQ
- Why did the court rule against KuCoin? The court determined that a unilateral email declaring assets “abandoned” does not override the fundamental property rights of the user.
- Has the investor been paid? As of the latest reports, the investor has not received the funds and is preparing further legal action.
