A Seychelles court judgment related to delisted CHP tokens has placed KuCoin under new legal scrutiny.
Summary
- A Seychelles court has ordered KuCoin to compensate a Swiss investor for more than 21 million delisted CHP tokens.
- The investor claims that KuCoin did not pay the judgment or participate in related legal proceedings.
- The ruling rejected KuCoin’s claim that unretired delisted tokens became abandoned property.
A Swiss investor claims the exchange failed to pay court-ordered compensation exceeding $2 million. The dispute concerns 21 million CHP tokens and a decision handed down by the Seychelles Supreme Court in December 2025.
Court ruling focuses on delisted CHP tokens
According to reports, the Seychelles Supreme Court ruled against KuCoin in December 2025. The case concerned 21 million CHP tokens that remained on the platform after their delisting. The court rejected the idea that unwithdrawn tokens automatically become abandoned property. Instead, the ruling treated the tokens as obligations owed to the investor. The decision ordered compensation in excess of $2 million.
The investor claims that KuCoin has not complied with the judgment. Six months after the judgment, the compensation would still be unpaid. The investor also claims that the exchange did not participate in related proceedings. According to the allegations, KuCoin did not respond to inquiries regarding the matter. Public records cited in the reports do not indicate payment of the judgment.
The dispute has attracted attention because KuCoin operates through entities based in Seychelles. The decision came from the same jurisdiction where parts of the exchange retain legal incorporation. The case now focuses on whether local court rulings can compel action by global crypto platforms. Enforcement of the law remains a central issue in the ongoing dispute. The investor continues to seek recovery through available legal channels.
Investor challenges exchange treatment of delisted assets
The CHP dispute arises from how exchanges treat delisted digital assets. Many trading platforms remove tokens when activity declines or compliance issues arise. Users often benefit from a cooling-off period before the end of support. The Seychelles decision addresses what happens once these deadlines pass. The court determined that CHP’s assets retained their legal value.
According to reports, KuCoin claimed that the undelisted CHP tokens were abandoned after their delisting. The court did not accept this position. Instead, it tied assets to financial obligations owed by the exchange. The decision drew a legal distinction between expungement and property rights. This interpretation formed the basis of the compensation order.
The case also drew attention to the exchanges’ terms of service. Many platforms include provisions covering inactive or unsupported assets. However, legal treatment may vary by jurisdiction. The CHP’s decision related to a specific dispute under Seychelles law. Other courts may consider similar issues in different legal frameworks.
Application questions remain unanswered
The investor now faces the challenge of enforcing the judgment. Reports indicate that Seychelles courts have limited reach over globally distributed assets. Recovery efforts may require the identification of foreign exchange assets in other jurisdictions.
Enforcement procedures may depend on local recognition of foreign judgments. These steps may take time and involve additional legal proceedings. The CFTC and other regulators have recently paid increased attention to cross-border crypto platforms.
At the same time, legal disputes continue to arise in multiple jurisdictions. The KuCoin case adds another legal challenge regarding exchange liability. The investor maintains that the judgment remains unpaid. KuCoin has not publicly responded to the allegations outlined in the reports.
