US crypto trade FTX has filed a lawsuit towards Dunamu, the operator of South Korea’s largest trade Upbit, to recuperate greater than $53 million in property.
The lawsuit, part of the continuing FTX chapter proceedings, was filed by FTX’s subsidiary Alameda Analysis on November 5, 2024, with the US Chapter Court docket for the District of Delaware. The case remains to be pending.
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Why Is FTX Suing Dunamu?
The lawsuit filed by FTX towards Dunamu is a “complaint for the return of assets and violation of automatic stay.” The core of the declare is that Dunamu, by means of its Upbit trade, is holding FTX’s property and may return them.
In response to Alameda Analysis, the corporate opened digital asset storage accounts on crypto exchanges worldwide. It opened these accounts not solely in its personal identify but in addition underneath worker names or shell corporations. The aim was to create a kind of secret nominee account.
Unraveling a “Secret Account”
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Moreover, FTX claims that Yang Jai Sung is the daddy of Charles Yang, the pinnacle dealer for Genesis Block. That is an Alameda affiliate, and the declare is predicated on a lawsuit between FTX and Genesis Block.
FTX entered chapter proceedings in November 2022 after revelations of buyer fund misuse and accounting irregularities. Misusing buyer funds by means of its affiliate, Alameda, was a big level of competition. Consequently, founder Sam Bankman-Fried (SBF) was sentenced to 25 years in jail in March 2024.
FTX claims it requested the return of the property from Dunamu a number of occasions, however Dunamu has not complied and not using a legitimate cause. FTX made the primary request on November 16, 2022, and a second one in January 2023, however obtained no response.
The Case Heats Up
In response to the grievance, Dunamu responded in July 2023, saying it couldn’t even affirm the Alameda Analysis account existed. It demanded proof that Alameda Analysis really managed the account.
Though Alameda Analysis supplied documentation, Dunamu notified them that the “submitted materials were insufficient.” The corporate wouldn’t proceed and not using a doc proving a contract between Alameda and Yang Jai Sung.
FTX defined that SBF’s prison trial testimony included a press release that an “$8 billion debt was hidden through the seoyuncharles88 account.”
A Dunamu consultant instructed BeInCrypto that “the questioned account is currently frozen due to anti-money laundering issues,” including, “Dunamu is in the role of safekeeping the frozen virtual assets.”
