TLDR
- FTX has filed lawsuits against NFT Stars and Delysium (Kurosemi) for failing to deliver tokens owed under investment agreements
- The lawsuits seek return of over 83 million SIDUS, 831,000 SENATE, and 75 million AGI tokens, plus damages
- FTX made multiple attempts to resolve the disputes before turning to litigation
- The legal action is part of FTX’s broader strategy to recover assets for creditor repayments
- FTX warns other token issuers that it will pursue litigation if they don’t return assets that belong to the exchange
The FTX Estate has opened a new chapter in its asset recovery efforts. The bankrupt crypto exchange filed lawsuits against token issuers NFT Stars and Kurosemi (doing business as Delysium) on Monday. These legal actions claim both companies failed to deliver tokens that were promised under investment agreements with Alameda Ventures.
Filed in U.S. Bankruptcy Court in Delaware, the complaints seek to force these companies to turn over tokens that FTX claims were purchased through Simple Agreements for Future Tokens (SAFTs). The lawsuits come as FTX works to recover funds for its creditors following its collapse in 2022.
“We urge token and coin issuers to return assets that rightfully belong to FTX, and are willing to initiate litigation barring adequate engagement,” the FTX Estate said in its statement. This marks a clear escalation in the exchange’s recovery strategy.
The FTX collapse shocked the cryptocurrency world in November 2022. It came after revelations that around $8 billion in customer funds had been misused by executives to cover risky bets made by FTX’s affiliated trading firm, Alameda Research.
The Token Disputes
According to court documents, NFT Stars and Delysium breached contracts by failing to transfer tokens despite FTX’s repeated attempts to resolve the issues outside of court. The complaints detail specific investment agreements that were allegedly violated.
In the case against Delysium, an AI agent blockchain project, FTX claims Alameda Ventures paid $1 million in January 2022 for the right to receive 75 million AGI tokens. The tokens launched in April 2023 with a vesting schedule, starting with 20% unlocking after a 12-month cliff period.
However, Delysium allegedly extended the vesting schedule unilaterally to 48 months and refused to transfer any tokens. A company representative reportedly stated in a public Discord message that they would not allocate tokens to FTX due to the bankruptcy proceedings.
The NFT Stars case involves a payment of $325,000 made in November 2021. This was for rights to 1.35 million SENATE tokens and 135 million SIDUS tokens. While NFT Stars initially delivered some tokens, it allegedly stopped further transfers after FTX filed for bankruptcy.
FTX now claims NFT Stars owes more than 831,000 SENATE tokens and 83 million SIDUS tokens. The exchange cites breaches of contract and violation of bankruptcy protections in its filing.
Between June 2023 and September 2024, FTX’s advisors attempted to contact NFT Stars 15 times and Delysium 13 times. According to the complaints, these contact attempts received no response.
FTX is seeking immediate return of the assets, damages for breach of contract, and sanctions for alleged violations of bankruptcy protections. This includes violations related to the automatic stay under U.S. bankruptcy law.
The lawsuits represent just one aspect of FTX’s recovery efforts. On February 18, 2025, the exchange began its initial distributions of recovered funds to holders of approved claims in its Convenience Class.
A second round of payments is scheduled to begin on May 30, with a record date of April 11. This distribution will include Class 5 Customer Entitlement Claims, Class 6 General Unsecured Claims, and additional Convenience Claims approved since the initial record date.
The bankruptcy estate’s initial distribution targeted “Convenience Class” claims under $50,000, reaching the majority of affected users. This is part of a creditor repayment program that could total more than $16 billion.
Sam Bankman-Fried, FTX’s founder and former CEO, was convicted of fraud and conspiracy charges and sentenced to 25 years in prison. The company’s recovery efforts continue under new management as it works through its restructuring plan.
FTX has warned that further lawsuits will be filed against token issuers who fail to cooperate with its asset recovery efforts. The company’s team continues to work to maximize recoveries for the FTX Estate and return funds to creditors.
Last month, FTX faced another challenge when Three Arrows Capital’s claim was increased from $120 million to $1.5 billion. This amendment followed new findings about Three Arrows Capital’s extensive dealings with FTX.
