A Seychelles court decision involving delisted CHP tokens has exposed KuCoin to renewed legal pressure. A Swiss investor claims the exchange has failed to satisfy a judgment worth more than $2 million, stemming from 21 million CHP tokens that remained on the platform after delisting. The Seychelles Supreme Court ruled in December 2025 that unwithdrawn tokens do not automatically become abandoned property, rejecting KuCoin’s argument. Instead, the court treated the digital assets as enforceable obligations, leading to a compensation order exceeding $2 million. The investor asserts that KuCoin has not paid the award or engaged with subsequent legal proceedings, leaving the judgment unpaid six months later.
The dispute highlights how exchanges manage delisted assets. Many platforms issue withdrawal windows before removing tokens, but the Seychelles ruling clarified that post-delisting holdings retain legal value. KuCoin had contended that unclaimed CHP tokens were effectively abandoned, but the court disagreed, linking the assets to financial responsibilities owed by the exchange. This interpretation establishes a legal boundary between delisting and ownership, forming the basis for compensation. However, enforcement remains a major hurdle. Seychelles courts have limited authority over global crypto assets, and the investor may need to seek recovery in other jurisdictions. The CFTC and other regulators are increasingly scrutinizing cross-border platforms, adding to the complexity. KuCoin has not publicly addressed the specific allegations, but the case underscores ongoing tensions between exchange policies and investor rights.