A Swiss investor stated KuCoin has but to pay a Seychelles Supreme Courtroom award of greater than $2 million after the alternate declared its tokens “deserted.”
In and Dec. 11, 2025, ruling, the Supreme Courtroom of Seychelles declared that Didier Rabl is the “sole proprietor and proprietor” of roughly 21 million CoinPoker (CHP) tokens beforehand held for him on KuCoin. The court docket additionally ordered three Seychelles-incorporated KuCoin entities to pay him over 2 million USDt (USDT) plus $10,000 in ethical damages, in line with paperwork reviewed by Cointelegraph.
The ruling may have implications for a way cryptocurrency exchanges deal with delisted belongings, with the court docket discovering that KuCoin didn’t grow to be the helpful proprietor of Rabl’s tokens and remained obligated to safeguard the belongings and honor lawful withdrawal requests.
KuCoin’s Seychelles entities didn’t seem or defend the case.
Copies of emails reviewed by Cointelegraph present that KuCoin despatched Rabl a sequence of delisting notices in 2021, warning that withdrawals of CHP would shut on July 28 of that yr. The emails said that any unwithdrawn funds could be deemed “deserted” with “no rights to assert again.”
Courtroom Order. Supply: Seychelles Supreme Courtroom
The court docket discovered that every one the emails “remained unread and unanswered” and that KuCoin delisted CHP “with out making any additional try and notify the Plaintiff by put up, phone, or any various means.”
Seychelles FSA confirms receipt of KuCoin judgment
The court docket held {that a} unilateral delisting electronic mail with “deemed to have deserted” wording was not ample to take away a buyer’s rights to tokens already of their account when no such forfeiture time period was within the authentic contract.
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KuCoin’s phrases of use on the time gave the platform broad powers to droop or terminate accounts and to restrict its legal responsibility, however didn’t explicitly state that unwithdrawn tokens after a delisting grow to be KuCoin’s property.
A blockchain evaluation report shared with Cointelegraph traced actions of the legacy Ethereum CHP token and recognized an deal with labeled “KuCoin 6” on Etherscan that holds 21,000,000.0509 CHP, or about 5.9% of the entire provide.
The Supreme Courtroom directed its Registrar to serve the judgment on Seychelles’ Monetary Providers Authority (FSA).
In a written response to Cointelegraph, an FSA spokesperson confirmed it had acquired the judgment and stated Mek International Ltd, the KuCoin-linked firm that utilized for a digital asset service supplier (VASP) license, had its utility rejected on June 4, 2025, and was required to stop all enterprise performed in or from Seychelles.
The FSA additionally published a public assertion noting that Peken International Restricted, one of many defendants within the case, opted emigrate its providers outdoors Seychelles following the rejection of the appliance.
Below Seychelles’ Digital Asset Service Suppliers Act, licensed exchanges are required to segregate consumer belongings and preserve them at a 100% reserve, the spokesperson stated.
Supply: Seychelles Ministry of Finance
Authorized skilled highlights limits of ex parte judgment
Joshua Chu, co-chair of the Hong Kong Web3 Affiliation, and a lawyer who has dealt with Seychelles-related arbitration, advised Cointelegraph, “It must be famous from the outset that this judgment was determined totally ex parte,” mentioning that KuCoin’s entities “by no means appeared, by no means defended, and by no means submitted to jurisdiction.” Justice N. Burian’s resolution is “first occasion solely,” he stated, with “no binding pressure outdoors Seychelles.”
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Chu stated the court docket proceeded on the premise that the exchange-customer relationship was “at minimal contractual, obliging the alternate to safeguard the belongings and to honor lawful withdrawal directions.”
In precept, a VASP’s unexplained failure to adjust to a remaining Supreme Courtroom order regarding buyer belongings would sit uneasily with requirements of integrity, cooperation with courts and regulators, and respect for consumer property, Chu stated. He added that “a defendant in future contested proceedings may argue that its factual assumptions are incomplete,” and that the implications would rely upon any appellate course of.
Rabl advised Cointelegraph he has not acquired any cost from the Seychelles entities named within the judgment and is making ready further authorized motion in Seychelles aimed toward imposing the award and probably searching for further damages.
KuCoin didn’t reply to a number of requests for remark from Cointelegraph.
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