Where Are FTX’s Tokens? Lawsuits Filed Against NFT Stars and Kurosemi

Bankrupt cryptocurrency exchange FTX is aggressively pursuing the recovery of its assets through legal channels, recently filing lawsuits against NFT platform NFT Stars and metaverse project Delysium. The move, announced via an X post on April 28th, underscores FTX’s commitment to reimbursing its creditors following its dramatic collapse.

The lawsuits, lodged in a Delaware bankruptcy court, allege that both NFT Stars and Delysium failed to deliver digital tokens for which FTX had already paid. According to court documents, FTX made multiple attempts to resolve the outstanding deliveries with both companies privately, but these efforts proved unsuccessful.

Alleged Non-Delivery of Tokens Fuels FTX Lawsuits

FTX claims that in November 2021, it paid NFT Stars $325,000 for 1.35 million SENATE tokens and 135 million SIDUS tokens. Similarly, the lawsuit against Delysium involves a $1 million payment made in January 2022 by FTX’s trading arm, Alameda Research, for 75 million AGI tokens. The agreement stipulated a phased release of the AGI tokens, initially scheduled to commence in April 2023.

Also Read: FTX Token Tops Binance Delisting Vote — 17 Altcoins at Risk

FTX Seeks Token Delivery and Compensation for Lost Profits

The planned distribution timeline for the AGI tokens was subsequently extended to 48 months before being halted entirely due to FTX’s bankruptcy in November 2022. In its legal filings, FTX is not only demanding the delivery of the remaining contracted tokens from both NFT Stars and Delysium but is also seeking additional financial compensation to cover the potential profits the exchange missed out on due to the non-delivery.

FTX has indicated that its pursuit of asset recovery will not end with these lawsuits. The company stated that it is actively engaging with other entities facing similar issues regarding FTX’s assets and will not hesitate to initiate further legal action against non-cooperative parties. As of press time, neither NFT Stars nor Delysium had issued any public response to the allegations.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.

Andrew Chen

I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.