Crypto exchange KuCoin is facing renewed legal attention after a court ruling in Seychelles ordered the company to compensate a Swiss investor over millions of delisted CHP tokens.
The dispute centers on 21 million CHP tokens that remained on the exchange after the token was delisted. In December 2025, the Seychelles Supreme Court ruled in favor of the investor and ordered compensation worth more than $2 million.
According to reports, the investor claims that KuCoin has not paid the court-ordered amount, even six months after the judgment was issued. The investor also alleges that the exchange has not taken part in related legal proceedings and has not responded to requests concerning the case.
At the heart of the dispute is the question of what happens to digital assets after they are delisted from an exchange.
KuCoin reportedly argued that CHP tokens left on the platform after the withdrawal deadline should be considered abandoned property. However, the Seychelles court rejected that argument.
Instead, the court ruled that the tokens still belonged to the investor and that the exchange remained responsible for them. The decision established that delisting a token does not automatically remove a user’s ownership rights or the exchange’s obligations toward those assets.
The case has attracted attention because KuCoin operates through entities incorporated in Seychelles, making the ruling particularly significant. It raises broader questions about how crypto exchanges handle unsupported assets and what legal protections users have when tokens are removed from trading platforms.
The dispute has also highlighted the importance of exchange terms of service. Many crypto platforms provide users with a limited period to withdraw assets after a delisting announcement. However, courts may interpret ownership rights differently depending on the jurisdiction and the specific circumstances of each case.
While the court ruling appears to be a victory for the investor, enforcing the judgment may prove more challenging.
Legal experts note that recovering funds from global cryptocurrency companies can be complicated, especially when assets and operations are spread across multiple countries. In some cases, investors may need to pursue additional legal action in other jurisdictions to enforce court decisions.
The case adds to the growing number of legal disputes involving cryptocurrency exchanges and user assets. As regulators and courts around the world increase scrutiny of the industry, questions about exchange accountability, customer protections, and asset ownership continue to gain importance.
For now, the investor maintains that the court-ordered compensation remains unpaid, while KuCoin has not publicly responded to the allegations mentioned in the reports.
