Legal Battle Over Cryptocurrency Ownership
A significant legal battle has emerged following a ruling by the Supreme Court of Seychelles, which found in favor of a Swiss investor who claimed that the cryptocurrency exchange KuCoin improperly labeled his unwithdrawn tokens as “abandoned.” Didier Rabl, the investor, was awarded over $2 million by the court, but as of now, he asserts that the exchange has yet to comply with this judgment.
Court Ruling Details
The court’s decision, made on December 11, 2025, determined that Rabl retains sole ownership of approximately 21 million CoinPoker (CHP) tokens that were previously managed by KuCoin. The ruling mandated three entities in Seychelles associated with KuCoin to not only reimburse Rabl the sum of over 2 million USDT (Tether) but also to pay him an additional $10,000 for moral damages. This legal outcome may influence how exchanges handle assets that have been delisted, particularly in relation to the rights of their clients.
KuCoin’s Obligations and Practices
Noteworthy is the court’s assertion that KuCoin did not become the rightful owner of Rabl’s tokens after their delisting and therefore has a continuing obligation to protect the tokens and fulfill requests for withdrawals.
In fact, KuCoin entities did not present any defense during the proceedings, which raises further questions regarding their practices.
Delisting Notices and Communication Failures
KuCoin had previously issued a series of delisting notices to Rabl in 2021, indicating that withdrawals for the CHP tokens would cease by July 28 of that year. However, the court documented that KuCoin’s communications went unread and unanswered, emphasizing that the exchange failed to employ any other methods of notification, such as postal mail or phone calls. Consequently, the court determined that a simple email stating that unwithdrawn tokens would be considered “abandoned” was insufficient to absolve the exchange of its responsibility to the investor.
Terms of Service and Blockchain Analysis
KuCoin’s terms of service allowed the platform broad discretion in suspending accounts but did not explicitly mention that unwithdrawn tokens would be transferred to KuCoin’s ownership following a delisting. Blockchain analysis has shown the existence of an address associated with KuCoin that holds a substantial amount of Rabl’s CHP tokens, further complicating matters.
Regulatory Oversight and Future Implications
The Seychelles Financial Services Authority (FSA) has been made aware of the ruling, with a spokesperson confirming receipt of the judgment. They also stated that Mek Global Ltd, a KuCoin-related entity, had its request for a virtual asset service provider license denied in June 2025 and was subsequently required to cease operations in Seychelles.
Expert Opinions and Next Steps
Legal experts note that this ruling was made without KuCoin’s participation, which could limit its enforceability outside Seychelles.
Joshua Chu, co-chair of the Hong Kong Web3 Association, highlighted that the relationship between the exchange and its customers is at least contractual, obligating the exchange to safeguard client assets. Failure to comply with the court’s order could reflect poorly on KuCoin’s integrity and cooperation with legal obligations.
Rabl, meanwhile, has expressed his dissatisfaction with KuCoin’s inaction and is preparing to initiate further legal proceedings to ensure that the court’s order is fulfilled, possibly seeking additional damages. Despite several attempts to obtain a comment, KuCoin has not responded to inquiries regarding the case.
