Headline: Seychelles court orders KuCoin to pay >$2M over delisted CHP tokens — investor says judgment still unpaid
A Seychelles Supreme Court ruling over delisted CHP tokens has put KuCoin back in the legal spotlight. In December 2025 the court found for a Swiss investor in a dispute involving 21 million CHP tokens that remained on the exchange after delisting, ordering compensation of more than $2 million. The investor now alleges that six months after the ruling KuCoin has not paid the award and has not engaged in related proceedings.
What the court decided
- The Seychelles court rejected the idea that tokens left on an exchange after a withdrawal window automatically become “abandoned” property.
- Instead, it treated the unwithdrawn 21 million CHP tokens as an obligation the exchange owed to the investor and awarded compensation exceeding $2 million.
Investor’s claims
- According to reports, the Swiss investor says KuCoin has not complied with the judgment and has not participated in follow-up proceedings or responded to requests about the case.
- Public records cited by the investor allegedly show no payment of the court-ordered award.
Why this matters
- KuCoin operates through entities incorporated in the Seychelles, making a local ruling particularly relevant to the dispute.
- The case highlights a core legal question for exchanges: what happens to user assets after a token is delisted and the withdrawal window closes. The Seychelles ruling draws a clear line under local law that delisting does not automatically extinguish ownership rights.
- The ruling could set a precedent in jurisdictions that treat similar disputes the same way, but enforcement is a separate challenge.
Enforcement hurdles
- Even with a favorable judgment, enforcing a Seychelles court order against a global crypto platform can be difficult. Recovery may require locating exchange-linked assets in other jurisdictions or securing local courts’ recognition of the foreign judgment.
- Those enforcement steps can be lengthy and may involve additional litigation in multiple countries.
Regulatory backdrop
- The dispute arrives amid increased regulatory scrutiny of cross-border crypto platforms from agencies such as the CFTC and other authorities. Court fights over delisted or inactive assets are multiplying as exchanges and users square off across jurisdictions.
What’s next
- The investor says they are pursuing available legal channels to enforce the award. Public reports indicate no payment has been recorded and KuCoin has not publicly responded to the allegations.
Takeaway
The Seychelles decision underscores that delisting rules and exchange terms of service can carry different legal weight depending on jurisdiction. For users and platforms alike, the case illustrates both the potential legal exposure exchanges face over dormant assets and the practical difficulties of enforcing local judgments against multinational crypto businesses.
Read more AI-generated news on: undefined/news
