KuCoin Faces $2M Unpaid Award Over Delisted CHP Token Dispute

A Seychelles Supreme Court docket ruling has ordered cryptocurrency change KuCoin to pay over $2 million to Swiss investor Didier Rabl, however the cost stays excellent. The case facilities on the delisting of 21 million CoinPoker (CHP) tokens, which KuCoin allegedly deemed ‘deserted’ after sending a collection of withdrawal notices in 2021.

Based on court docket paperwork, the Seychelles court docket declared on December 11, 2025, that Rabl is the rightful proprietor of the CHP tokens and awarded him $2 million in USDT, plus $10,000 in ethical damages. Nevertheless, KuCoin’s Seychelles-based entities, which didn’t seem or defend the case, have but to adjust to the judgment. The Monetary Providers Authority (FSA) of Seychelles confirmed receipt of the ruling, stating that KuCoin-linked entities had already been compelled to stop operations within the jurisdiction after a digital asset service supplier (VASP) license software was rejected in June 2025.

This authorized battle raises broader considerations about how exchanges deal with delisted tokens. KuCoin’s emails to Rabl in 2021 reportedly warned that failure to withdraw CHP by a specified deadline would end result within the tokens being thought-about ‘deserted,’ with no restoration rights. Nevertheless, the court docket discovered that these unilateral notices didn’t meet the contractual or authorized requirements required to strip a buyer of their token possession. The emails additionally went unread, and no extra notification strategies have been used, reminiscent of cellphone calls or bodily mail.

Implications for Token Delisting Practices

The court docket’s choice could set a precedent for a way exchanges handle delisted belongings. KuCoin’s phrases of use on the time allowed the platform to droop or terminate accounts however lacked express language claiming possession of unwithdrawn tokens post-delisting. The court docket dominated that KuCoin remained obligated to safeguard buyer belongings and fulfill lawful withdrawal requests, even after delisting.

CHP tokens, initially issued as a part of a poker-focused blockchain mission, have seen declining market exercise. As of June 13, 2026, CHP trades at $0.0007398, with a market cap of simply $101,726. This displays each lowered change assist and the mission’s diminished liquidity. The broader crypto market has seen comparable delisting controversies, together with KuCoin’s current elimination of Commerce Tide Token (TTD) on June 5, 2026, beneath its Particular Remedy guidelines, citing low liquidity and compliance considerations.

Authorized and Regulatory Tensions

Authorized specialists spotlight the bounds of the Seychelles ruling, as KuCoin didn’t take part within the proceedings. Joshua Chu, co-chair of the Hong Kong Web3 Affiliation, identified that the judgment was issued ex parte—with out enter from KuCoin’s entities—and holds no binding drive outdoors Seychelles. But, the case nonetheless underscores the obligations of exchanges working as VASPs to segregate and safeguard shopper belongings.

For now, Rabl has reportedly initiated additional authorized motion in Seychelles to implement the award. In the meantime, KuCoin has not responded to a number of requests for remark.

With regulatory scrutiny growing globally, unresolved disputes like this one may amplify requires tighter oversight of cryptocurrency exchanges, significantly relating to delisting procedures and shopper asset protections.

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