FTX Estate Seeks to Revive Lawsuit Over Assets Held on HTX and Poloniex
The bankruptcy estate overseeing the collapse of FTX is attempting to revive litigation tied to assets it says remain stranded on crypto platforms linked to Justin Sun, signaling that unresolved disputes from the exchange’s downfall are still working their way through the courts.
The FTX Recovery Trust has filed a motion seeking permission to amend an earlier lawsuit against HTX (formerly Huobi), Poloniex, and Justin Sun. The revised complaint aims to strengthen claims that funds belonging to Alameda Research were effectively frozen on those platforms when FTX and its trading arm entered bankruptcy proceedings.
Key Takeaways
- The FTX estate is trying to revive a lawsuit to recover about $27 million held on HTX and Poloniex
- The case centers on claims that Alameda-linked accounts were frozen during the bankruptcy
- The amended filing argues that several Justin Sun–affiliated entities were effectively controlled as one
According to the proposed amendment, Alameda held roughly $27 million in digital assets across accounts at HTX and Poloniex at the time of the collapse. The estate argues that these assets were inaccessible because the exchanges locked the accounts, preventing recovery efforts during bankruptcy.
How the funds were allegedly structured
The filing outlines how the assets were distributed. Around $22 million was allegedly held in an HTX account that was not opened directly under Alameda Research’s corporate name but instead under the name of a former Alameda employee. The estate claims HTX has yet to release those assets.
At Poloniex, the complaint says Alameda maintained an account associated with Sam Bankman-Fried that held approximately $5.5 million at the time of bankruptcy. Despite repeated attempts to reclaim the funds, the estate alleges that Poloniex has not returned them.
The amended complaint broadens the scope of responsibility by naming multiple entities it describes as closely linked to Sun, arguing they functioned as a single, integrated operation rather than independent businesses.
Claims of overlapping control
Central to the estate’s argument is the assertion that Sun exercised unified control over HTX, Poloniex, and other affiliated entities. The filing points to internal documents, user agreements, and support materials that reference shared services or partnerships between the exchanges.
The complaint also revisits Sun’s own exposure to FTX through entities known as Orange Anthem and Black Anthem. One of those entities filed a customer claim for roughly $12 million during the bankruptcy process. The estate argues that documentation submitted to FTX blurred distinctions between the entities, implying that assets were interchangeable based on Sun’s control rather than formal ownership.
Disputes over entity structure
The amended filing raises questions about the legal structure behind both exchanges. It claims that Poloniex’s previously registered operating entity in the Seychelles was struck from the corporate registry years ago, while current user agreements reference Panamanian law. For HTX, the estate says it has been unable to locate corporate records for an entity cited in public service agreements.
These uncertainties form part of the estate’s broader argument that opaque corporate arrangements complicated asset recovery efforts during the bankruptcy.
Context and next steps
The original lawsuit was filed in November 2024 but was later dismissed after defendants sought to throw out the case. In January, the FTX estate asked the court for permission to amend its complaint, effectively seeking another chance to pursue the claims with expanded detail.
If the court grants the motion, the dispute could reopen a contentious chapter of the FTX collapse, focusing on how exchange relationships, account structures, and affiliated entities handled customer and counterparty assets during one of crypto’s largest failures.
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Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
