KuCoin $2M award unpaid in Seychelles delisted token dispute
A Swiss investor says the KuCoin $2M award remains unpaid after a Seychelles Supreme Court ruling tied to a delisted token dispute. In a Dec. 11, 2025 decision, the court declared Didier Rabl the “sole proprietor and owner” of about 21 million CoinPoker (CHP) tokens previously held on KuCoin. The court ordered three KuCoin-linked Seychelles entities to pay Rabl more than $2 million in USDt (USDT), plus $10,000 in moral damages.
The ruling matters for exchange handling of delisted assets. It found KuCoin did not become the “beneficial owner” of Rabl’s tokens and was still obligated to safeguard client assets and process lawful withdrawals. The judgment also criticized KuCoin’s approach: delisting notices in 2021 said withdrawals would close on July 28 and that unwithdrawn funds would be deemed “abandoned” with “no rights to claim back,” but the court said the emails remained unread/unanswered and KuCoin did not try other notice channels.
According to a spokesperson for the Seychelles Financial Services Authority (FSA), it received the judgment. The FSA also said the KuCoin-linked applicant Mek Global Ltd’s VASP licence was rejected and it was required to cease Seychelles-related business. A legal expert noted the decision was ex parte and “first instance only,” with potential limits outside Seychelles.
Rabl says he has not received payment and is preparing further Seychelles enforcement actions. KuCoin did not respond to requests for comment. Traders should watch for heightened scrutiny of exchange custody/asset segregation rules after this KuCoin $2M award case, which could affect sentiment around delisted or suspended tokens in the short term.
Bearish
The case centers on a Seychelles Supreme Court order against KuCoin-linked entities and an asserted unpaid “KuCoin $2M award.” This increases perceived counterparty and custody risk for traders holding tokens on exchanges, especially delisted or suspended assets. In the short term, negative headlines can pressure sentiment toward similar venues or assets with unclear exit paths. In the longer term, if enforcement actions expand or appeals fail, the precedent-like reasoning about segregation and customer property rights can tighten industry behavior (more conservative listings/withdrawal processes), but it can also trigger liquidity shifts away from borderline tokens.
Historically, disputes where courts challenge exchange handling of customer funds tend to produce temporary risk-off moves, wider spreads on affected tokens, and faster migration toward venues with clearer custody/reserve disclosures. Even though the decision is “first instance only” and ex parte (and thus not necessarily binding elsewhere), the involvement of the Seychelles FSA and the explicit 100% reserve requirement for licensed VASPs raise the probability of compliance-driven changes that traders may price in immediately. Hence, bearish for sentiment and delisted-token risk, though not necessarily a broad market crash driver.