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

A Seychelles Supreme Court ruling has ordered cryptocurrency exchange KuCoin to pay over $2 million to Swiss investor Didier Rabl, but the payment remains outstanding. The case centers on the delisting of 21 million CoinPoker (CHP) tokens, which KuCoin allegedly deemed ‘abandoned’ after sending a series of withdrawal notices in 2021.

According to court documents, the Seychelles court declared on December 11, 2025, that Rabl is the rightful owner of the CHP tokens and awarded him $2 million in USDT, plus $10,000 in moral damages. However, KuCoin’s Seychelles-based entities, which did not appear or defend the case, have yet to comply with the judgment. The Financial Services Authority (FSA) of Seychelles confirmed receipt of the ruling, stating that KuCoin-linked entities had already been forced to cease operations in the jurisdiction after a virtual asset service provider (VASP) license application was rejected in June 2025.

This legal battle raises broader concerns about how exchanges handle delisted tokens. KuCoin’s emails to Rabl in 2021 reportedly warned that failure to withdraw CHP by a specified deadline would result in the tokens being considered ‘abandoned,’ with no recovery rights. However, the court found that these unilateral notices did not meet the contractual or legal standards required to strip a customer of their token ownership. The emails also went unread, and no additional notification methods were used, such as phone calls or physical mail.

Implications for Token Delisting Practices

The court’s decision may set a precedent for how exchanges manage delisted assets. KuCoin’s terms of use at the time allowed the platform to suspend or terminate accounts but lacked explicit language claiming ownership of unwithdrawn tokens post-delisting. The court ruled that KuCoin remained obligated to safeguard customer assets and fulfill lawful withdrawal requests, even after delisting.

CHP tokens, initially issued as part of a poker-focused blockchain project, have seen declining market activity. As of June 13, 2026, CHP trades at $0.0007398, with a market cap of just $101,726. This reflects both reduced exchange support and the project’s diminished liquidity. The broader crypto market has seen similar delisting controversies, including KuCoin’s recent removal of Trade Tide Token (TTD) on June 5, 2026, under its Special Treatment rules, citing low liquidity and compliance concerns.

Legal and Regulatory Tensions

Legal experts highlight the limits of the Seychelles ruling, as KuCoin did not participate in the proceedings. Joshua Chu, co-chair of the Hong Kong Web3 Association, pointed out that the judgment was issued ex parte—without input from KuCoin’s entities—and holds no binding force outside Seychelles. Yet, the case still underscores the obligations of exchanges operating as VASPs to segregate and safeguard client assets.

For now, Rabl has reportedly initiated further legal action in Seychelles to enforce the award. Meanwhile, KuCoin has not responded to multiple requests for comment.

With regulatory scrutiny increasing globally, unresolved disputes like this one could amplify calls for tighter oversight of cryptocurrency exchanges, particularly regarding delisting procedures and client asset protections.

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