The repayment plan of FTX is under effect, but the company is still trying to recover the lost money no thanks to Sam Bankman-Fried's fraudulent acts, there are platforms like Crypto.com that are making it hard for the company. As much as $11 million are currently kept on Crypto.com now that FTX is trying to recover, and this account has since been locked out from when the company declared bankruptcy.
To be more precise, this account is owned by FTX's sister company, Alameda Research, and they are now taking the complaints to court against Crypto.com and other platforms that are holding out on their money.
FTX Fights to Recover $11M From Crypto.com to Repay Users
Cointelegraph reported that FTX, particularly Alameda Research, has filed a new complaint against Crypto.com for refusing to coordinate with the company in returning the funds they kept in the crypto exchange platform. It was revealed that Alameda Research owns an account worth at least $11.4 million in Crypto.com, said to be "debtor assets" that are meant for the company to use in repaying investors.
This account was made before FTX declared bankruptcy over two years ago under the name "Ka Yu Tin," and Crypto.com has since "refused to cooperate" with the company after the Chapter 11 filing.
This latest filing from Alameda Research also included a signed declaration from its former CEO, Caroline Ellison, who claimed that the money was the "property of Alameda" before she turned herself over to serve her two-year prison time.
Crypto.com Locked Out Alameda's Account Since 2022
It was revealed via the filing that Crypto.com has since locked out the account of Alameda Research since 2022, right after the time Sam Bankman-Fried stepped down from his role as CEO and declared the company bankrupt.
Similarly, FTX has also taken the fight against KuCoin for a similar case where Alameda created an account that contains about $50 million, with a recent filing also asking for the assets bank for its repayment plan. KuCoin is also refusing to return the money it froze since the bankruptcy.
FTX's Repayment and Efforts to Pay Creditors
Two years after FTX collapsed and declared bankruptcy, the company won its most important fight against its founder, Sam Bankman-Fried, who was found guilty of his actions that caused the platform's demise. Now, Bankman-Fried is also facing 25 years in prison for defrauding investors and the company, as well as misplacing the money that was rightfully for its customers.
However, that is not all there is to FTX, as while Bankman-Fried will be facing the hardest time in a fraud conviction case, the company is left to clean up its mess and make it right for the people it caused trouble to. The bankrupted crypto exchange platform also claimed that it would repay the debts it owed to its customers, debtors, and investors with a plan in place.
The once largest crypto exchange platform in the world is staying true to its promises to repay its customers who suffered from SBF's actions, with as much as $12 billion to be given back, and the company is now reeling in all the funds it could get its hands to. This includes the money they kept in different accounts, especially the one locked away in Crypto.com which FTX is fighting for in court.
