Kucoin still hasn’t paid a court-ordered $2 million award to a Swiss investor, highlighting KuCoin’s liability practices, after a Seychelles ruling struck down its abandoned asset defense for delisted tokens, according to Crypto Briefing and Cointelegraph. The investor, who secured the judgment in Seychelles, hasn’t received any compensation from KuCoin’s named corporate entities and now plans further legal action to enforce the payout.
Seychelles Court Ruling Against KuCoin
Court records referenced by Crypto Briefing show the Seychelles court determined KuCoin couldn’t treat unwithdrawn tokens left during a delisting as abandoned property. It awarded over $2 million in damages to the Swiss claimant.
Investor Dispute Details
The token at the heart of this battle hasn’t been publicly disclosed, but analysts say the broader scenario mirrors disputes seen across multiple exchanges when delistings happen. The investor says his KuCoin-held tokens were locked up and made inaccessible after he missed the withdrawal deadline, a situation many crypto users now fear.
KuCoin’s terms at the time gave the exchange broad powers to suspend accounts and limit liability, though the policies never explicitly stated that unclaimed tokens would become KuCoin’s property. CoinTelegraph highlights the court’s focus on KuCoin’s failure to notify users through post, telephone, or any other direct means—a key factor, given the company’s rejected VASP (Virtual Asset Service Provider) license in Seychelles in June 2025, which forced it to stop doing business locally.
Tracing the Crypto Assets
Cointelegraph reports a blockchain analysis traced 21,000,000.0509 units of the Ethereum-based CHP token—5.9% of the total supply—to an address marked “KuCoin 6” on Etherscan. These figures match the size of the disputed holding, raising real questions about the asset’s current status and whether they’re still under KuCoin’s operational control. Seychelles’ Virtual Asset Service Providers Act, which compels licensed exchanges to segregate user assets and keep a full reserve, was designed to protect holders from operational risks or defaults. Still, the KuCoin saga underscores how tough it is for investors to verify if unwithdrawn tokens are truly gone or just sitting somewhere in cold storage on the platform. Mek Global Limited, a KuCoin-linked company, came under investigation right after its license application failed and it received a cease order in Seychelles on June 4, 2025.
Implications for Other Crypto Investors
Crypto Briefing analysts say abandonment clauses, similar to KuCoin’s, are commonly found in most major exchange terms. The Seychelles court’s rejection of that defense—grounded in contract law and consumer protection ideas—sets up the possibility that new claimants might challenge exchange forfeiture of assets following delistings in the future. Legal commentary in CoinTelegraph highlights the judgment was ex parte: KuCoin wasn’t present or represented in court.
Ongoing Litigation and Uncollected Judgments
As of June 2026, Cointelegraph confirms the Swiss investor has yet to receive any funds from Seychelles entities listed in the ruling.
Industry Reactions and Scrutiny
Despite the high stakes, Crypto Briefing reports the KuCoin case has gotten little attention from major crypto news outlets as of mid-June 2026. That limited coverage—combined with ongoing obfuscation about the specific token, court process, and blockchain tracing—has only fueled anxiety for digital asset holders. And industry figures say the lack of transparency makes it even harder for users to trust exchanges that set tight withdrawal windows. Cointelegraph underscores how this legal fight stokes a growing debate about whether exchanges based in regulatory havens like Seychelles can keep hiding behind broad abandonment clauses as investor pushback grows.
For further context on the intersection of crypto regulation and market structure, see JPMorgan says cash is crucial for a Bitcoin giant.
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Disclaimer: The content on this page is for informational purposes only and does not constitute financial advice. Always do your own research before making investment decisions.
STNews Editorial is the in-house newsroom of STNews, reporting on stablecoins, real-world assets (RWA) and the wider crypto market. Our team compiles and edits coverage from primary sources — exchange and on-chain data, company announcements and official regulatory filings.
