Hull City have accused former chairman Paul Duffen of spending company money for his own personal use.
The club on Thursday confirmed they have issued legal proceedings against Duffen in the High Court and on Friday issued a statement saying they have been successful in freezing his assets.
Hull also allege that Duffen's company received payments from agents in return for using those agents to deal with transfers.
The club said in a statement: "The company believes that Mr Duffen has acted in breach of his employment contracts and fiduciary duties as a director, through the use of company monies for his own personal expenditure and other wrongdoings.
"The company also believes that he has acted in breach of his employment contracts and fiduciary duties as a director, through the payment of certain monies by third party football agents to Mr Duffen's services company, in return for which Mr Duffen procured that Hull City contract with the agents for business.
"Consequently, on 15 January last, the company successfully sought and obtained a High Court order freezing Mr Duffen's assets.
"The company also wishes to clarify that, contrary to a tabloid newspaper article today, Mr Duffen has not issued any legal proceedings against the company and Hull City does not believe he has any basis whatsoever for doing so."
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