US crypto change FTX has filed a lawsuit towards Dunamu, the operator of South Korea’s largest change Upbit, to get well 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 Courtroom for the District of Delaware. The case continues to be pending.
Why Is FTX Suing Dunamu?
The lawsuit filed by FTX towards Dunamu is a “grievance for the return of property and violation of computerized keep.” The core of the declare is that Dunamu, by way of its Upbit change, is holding FTX’s property and may return them.
In keeping with Alameda Analysis, the corporate opened digital asset storage accounts on crypto exchanges worldwide. It opened these accounts not solely in its personal title but additionally underneath worker names or shell corporations. The aim was to create a sort of secret nominee account.
Unraveling a “Secret Account”
Alameda claims that somebody opened one in all these secret accounts on Upbit underneath Yang Jai Sung’s title, and an electronic mail deal with, seoyuncharles88@gmail.com.
FTX alleges the account was a secret Alameda account. That is based mostly on an inner messenger dialog from March 2022, the place an Alameda worker stated, “Upbit authentication is full.” The agency additionally famous that the seoyuncharles88 electronic mail deal with robotically forwarded to an Alameda deal with.
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 way of its affiliate, Alameda, was a major level of rivalry. Because of this, 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 with no legitimate purpose. FTX made the primary request on November 16, 2022, and a second one in January 2023, however acquired no response.
The Case Heats Up
In keeping with the grievance, Dunamu responded in July 2023, saying it couldn’t even verify the Alameda Analysis account existed. It demanded proof that Alameda Analysis truly managed the account.
Though Alameda Analysis offered documentation, Dunamu notified them that the “submitted supplies had been inadequate.” The corporate wouldn’t proceed with no doc proving a contract between Alameda and Yang Jai Sung.
FTX defined that SBF’s felony trial testimony included a press release that an “$8 billion debt was hidden by way of the seoyuncharles88 account.”
FTX additionally hooked up an affidavit from former Alameda Analysis CEO Caroline Ellison. Within the affidavit, she said that “one of many Alameda accounts was an Upbit account registered utilizing the seoyuncharles88 electronic mail, and Alameda managed, used, and funded this account.”
A Dunamu consultant informed BeInCrypto that “the questioned account is presently frozen on account of anti-money laundering points,” including, “Dunamu is within the function of safekeeping the frozen digital property.”
The publish “Secret Account” Scandal: Why FTX Desires $53M From Upbit appeared first on BeInCrypto.
