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

FTX filed a lawsuit to recover over $11 million from a Crypto.com account allegedly controlled by its sister company, Alameda Research.

The lawsuit, detailed in a Nov. 8 court document and obtained by crypto.news, alleges that Alameda opened accounts under the name Ka Yu Tin (also known as Nicole Tin) as part of a broader practice of using shell companies and their employees. Names for conducting crypto trading secretly.

After Alameda declared bankruptcy, Crypto.com reportedly froze the account and blocked FTX executives from accessing funds.

FTX argues that Crypto.com refused to release the funds due to a mismatch between the registered account name and representatives of the FTX bankruptcy estate.

FTX has filed court-approved documents explaining the complexities of the account and claiming the assets belong to FTX creditors, but Crypto.com has yet to respond, according to the filing.

Foris MT and Iron Block

FTX is pursuing claims against Crypto.com’s parent companies, Foris MT and Iron Block, to increase leverage. These companies filed claims against FTX in the amount of $18.4 million and $237,800, respectively, related to pre-bankruptcy assets held on the FTX platform.

FTX argues that any claims made by these entities should be postponed until Crypto.com releases the disputed assets.

This lawsuit follows FTX’s broader efforts to recover funds from multiple exchanges, including Upbit.