Seychelles Supreme Court finds KuCoin failed to properly notify an investor before delisting CHP tokens, violating contract terms.
The Seychelles Supreme Court ordered KuCoin to pay $2M to an investor after ruling the exchange improperly delisted CHP tokens without adequate notification. The court found KuCoin’s unilateral email insufficient to forfeit the investor’s rights, as the original contract lacked such terms.
KuCoin’s terms allowed account suspensions but did not explicitly state that unwithdrawn tokens post-delisting become its property. A blockchain analysis identified a KuCoin-linked address holding 21M CHP tokens, roughly 5.9% of the total supply.
The Seychelles Financial Services Authority confirmed KuCoin’s VASP license application was rejected on June 4, 2025, and ordered the exchange to cease operations in the jurisdiction.