A Swiss investor is accusing crypto exchange KuCoin of failing to comply with a Seychelles Supreme Court order to pay over $2 million in compensation tied to 21 million delisted CHP tokens. The ruling, issued in December 2025, rejected the exchange's argument that unwithdrawn delisted tokens become abandoned property, instead treating them as financial obligations KuCoin must honor. Six months later, the investor claims the award remains unpaid and that KuCoin has not participated in court proceedings or responded to related requests.
The case centers on how exchanges handle digital assets after delisting. The court determined that CHP holdings retained legal value after the withdrawal period, establishing a precedent that could reshape exchange policies. KuCoin's silence on the matter has drawn attention to enforcement challenges, as Seychelles courts have limited tools to compel globally operating platforms with distributed assets. The investor must now seek recognition of the judgment in jurisdictions where KuCoin-linked funds are held, a process that is neither fast nor guaranteed.
The dispute highlights the growing tension between offshore crypto entities and local legal systems. As regulatory scrutiny over cross-border platforms intensifies, the outcome may influence how exchanges manage delisted tokens and their liability toward users. For now, the non-response by KuCoin itself serves as a market signal to traders monitoring platform accountability.
