A Seychelles court ruling related to deleted CHP tokens has put KuCoin under renewed legal scrutiny.
summary
- A Seychelles court ordered KuCoin to compensate a Swiss investor with more than 21 million delisted CHP tokens.
- The investor claims that KuCoin did not pay the judgment or participate in the relevant court proceedings.
- The ruling rejected KuCoin’s claim that the delisted tokens had become abandoned property.
A Swiss investor claims that the exchange did not pay court-ordered compensation exceeding $2 million. The dispute centers around 21 million CHP tokens and a ruling issued by the Seychelles Supreme Court in December 2025.
The court’s ruling focuses on the deleted CHP codes
According to reports, the Seychelles High Court ruled against KuCoin in December 2025. The case involved 21 million CHP tokens that remained on the platform after they were delisted. The court rejected the view that undrawn tokens automatically become abandoned property. Instead, the ruling treated the tokens as obligations owed to the investor. The decision awarded compensation exceeding $2 million.
The investor claims that KuCoin did not comply with the ruling. Six months after the ruling, the award reportedly remains unpaid. The investor also claims that the exchange did not participate in the relevant proceedings. According to the allegations, KuCoin did not respond to requests related to the case. Public records cited in the reports did not show payment of the judgment.
The dispute has drawn attention because KuCoin operates through Seychelles-based entities. The ruling came from the same jurisdiction where parts of the exchange maintain legal incorporation. The case now focuses on whether local court decisions can force global cryptocurrency platforms to take action. Legal implementation remains a central issue in the ongoing conflict. The investor continues to request recovery through available legal channels.
The investor challenges the exchange’s treatment of the deleted assets
The CHP dispute stems from how exchanges handle deleted digital assets. Many trading platforms remove tokens when activity decreases or compliance concerns arise. Users often receive a withdrawal period before support ends. The Seychelles ruling addressed what happens after those deadlines have passed. The court decided that the CHP’s property retained its legal value.
According to reports, Q Queen It was argued that undrawn CHP tokens became obsolete after being delisted. The court did not accept this position. Instead, assets are linked to financial liabilities owed on the stock exchange. The decision established a legal distinction between cancellation rights and ownership rights. This explanation formed the basis of the compensation order.
The case has also focused attention on the exchange’s terms of service. Many platforms include provisions covering inactive or unsupported assets. However, legal treatment can vary across jurisdictions. The CHP ruling addressed a specific dispute under Seychelles law. Other courts may evaluate similar cases under different legal frameworks.
Enforcement issues remain unresolved
The investor now faces the challenge of implementing the ruling. Reports indicate that Seychelles courts have limited scope in dealing with globally distributed assets. Recovery efforts may require identifying assets associated with the exchange in other jurisdictions.
Enforcement procedures can depend on domestic recognition of foreign judgments. These steps can take time and require additional legal procedures. the That’s enough for you Other regulatory bodies have recently increased interest in cross-border cryptocurrency platforms.
At the same time, jurisdictional disputes continue to arise in multiple jurisdictions. The KuCoin matter adds another legal challenge that involves holding the exchange accountable. The investor confirms that the judgment remains unpaid. KuCoin has not publicly addressed the allegations described in the reports.
