KuCoin faces scrutiny after investor cites $2 million unpaid Seychelles court ruling
A Seychelles court ruling tied to delisted CHP tokens has placed KuCoin under renewed legal scrutiny.
Summary
- A Seychelles court has ordered KuCoin to compensate a Swiss investor for more than 21 million CHP tokens that were removed.
- The investor says KuCoin has not paid the judgment or participated in related court proceedings.
- The ruling rejected KuCoin’s claim that the unredeemed tokens were forfeited assets.
A Swiss investor says the exchange did not pay a court-ordered award of more than $2 million. The dispute centers on the 21 million CHP tokens and the decision issued by the Seychelles Supreme Court in December 2025.
Court ruling centers on CHP tokens cleared
According to reports, the High Court of Seychelles ruled against KuCoin in December 2025. The case involved 21 million CHP tokens that remained on the platform after delisting. The court rejected the idea that non-revoked tokens become obsolete assets. Instead, the decision treated the tokens as obligations owed to the investor. The verdict ordered more than $2 million in compensation.
The investor says that KuCoin did not comply with the decision. Six months after the decision, the award has reportedly not been paid. The investor also claims that the exchange did not participate in related proceedings. According to the allegations, KuCoin did not respond to requests regarding the case. Public records cited in the reports did not show payment of the judgment.
The dispute has drawn attention because KuCoin operates through entities based in Seychelles. The decision came in the same place where parts of the exchange maintain legal inclusion. The case now centers on whether local court rulings can compel action from global crypto platforms. Law enforcement remains a key issue in the ongoing conflict. The investor continues to seek recovery through available legal channels.
An investor challenges the exchange’s management of liquidated assets
CHP’s controversy stems from the way exchanges handle stolen digital assets. Many trading platforms remove tokens when activity slows down or compliance concerns arise. Users often get time to withdraw before the end of support. The Seychelles decision addressed what happened after those deadlines had passed. The court ruled that the CHP funds retain legal value.
According to reports, KuCoin argued that the unredeemed CHP tokens were abandoned after being delisted. The court did not accept that position. Instead, it linked financial assets and liabilities owed to each other. The decision established a legal distinction between delisting and ownership rights. That definition forms the basis of the compensation order.
The case also focused on the terms of the exchange service. Many platforms include provisions that cover invalid or unsupported assets. However, legal treatment can vary from place to place. The CHP’s decision dealt with one particular dispute under Seychelles law. Other courts may examine the same issues under different legal frameworks.
Law enforcement questions remain unresolved
The investor now faces a challenge to enforce the judgment. Reports indicate that Seychelles courts have limited access to assets distributed around the world. Discovery efforts may require the identification of assets linked to trade in other jurisdictions.
Enforcement proceedings may depend on the local recognition of foreign judgments. Those steps can take time and involve other legal actions. The CFTC and other regulators have recently increased attention to cross-border crypto platforms.
At the same time, court disputes continue to arise in many areas. The KuCoin case adds another legal challenge involving exchange accountability. The investor insists that the judgment remains unpaid. KuCoin has not publicly commented on the allegations described in the reports.
