Swiss Investor Alleges KuCoin Avoids $2M Seychelles Court Order Over Delisted Tokens

An unpaid $2 million court judgment is the latest headache for KuCoin, as a Swiss investor accuses the exchange of ignoring a Seychelles Supreme Court order tied to 21 million delisted CHP tokens. According to the original report by WuBlockchain, the case stems from a December 2025 ruling that found KuCoin could not simply treat unwithdrawn tokens as abandoned.

The court directed KuCoin’s Seychelles-based entities to compensate the investor more than $2 million. Six months on, the exchange has reportedly neither appeared in court proceedings nor paid any part of the award. The investor says KuCoin has also not responded to the allegations.

The Judgment and KuCoin’s Silence

The Seychelles Supreme Court decision set a notable boundary. It rejected the exchange’s position that delisted tokens left in user wallets lose all value and become the platform’s to ignore. Instead, the court treated the 21 million CHP tokens as financial obligations KuCoin was bound to honor.

The fact that KuCoin chose not to mount a legal defense and now appears to ignore the ruling raises immediate questions about how offshore crypto exchanges approach court orders from their own incorporation jurisdictions. Seychelles is a hub for many crypto entities precisely because of its light-touch regulatory framework, but a local court ruling still carries weight—at least on paper.

The case arrives against a backdrop where the ongoing struggle to pass comprehensive crypto legislation in major markets shows the difficulty of holding cross-border platforms accountable. Without clear international coordination, a determined exchange can exploit jurisdictional gaps for years.

Token Delistings and Exchange Liability

Delisting tokens is routine business for exchanges. Projects lose momentum, volumes dry up, or regulatory fears force removals. What gets less attention is what happens to holders of those tokens afterward. KuCoin’s argument that unwithdrawn tokens become “abandoned” is not unique; many exchanges operate under similar terms of service, often without clear precedent on whether those terms hold up in court.

The CHP case could influence how other platforms handle delistings. If a court treats delisted tokens as property that exchanges must make whole, the cost calculation for future delistings changes dramatically. For traders, the risk extends beyond price volatility—it becomes a question of whether their balances retain any legal meaning once support ends. Monitoring developer activity across top blockchains offers one way to gauge project health, but exchange policies remain the critical gatekeepers of asset access.

Enforcement Gaps and What Comes Next

A court award is only as good as its enforcement. The Seychelles court has limited tools to compel a company that operates globally but keeps assets scattered. The investor would need to locate KuCoin-held funds in jurisdictions that recognize the Seychelles judgment, which is neither fast nor guaranteed. For now, the exchange’s silence suggests it is testing exactly how far that enforcement gap stretches.

The situation leaves traders with an uncomfortable reality: even a favorable court ruling may produce nothing if the defendant refuses to pay. As real-world asset tokenization milestones continue to deepen institutional involvement in crypto markets, episodes like this highlight a parallel universe where retail holders face unaccountable platforms. It remains unclear whether KuCoin will eventually settle or whether other investors with similar claims will come forward. What is clear is that the exchange’s non-response itself has become a market signal—one that savvy traders are watching closely.