FTX sues NFT Stars and Delysium over millions in unpaid crypto tokens as part of its ongoing efforts to recover assets and repay customers after its 2022 collapse.
FTX Estate Sues NFT Stars and Delysium Over Unreturned Tokens in Push to Repay Creditors
The FTX estate continues its aggressive legal campaign to recover lost assets and repay former customers, now targeting two crypto token issuers that have failed to deliver promised assets. On Monday, FTX Trading Ltd. and the FTX Recovery Trust filed a lawsuit against NFT Stars Limited and Kurosemi Inc., also known as Delysium, in Delaware bankruptcy court.
Unfulfilled Token Agreements Spark Legal Action
FTX, once a major crypto exchange, collapsed in November 2022 following a liquidity crisis and the revelation of an $8 billion misappropriation of customer funds by founder Sam Bankman-Fried via Alameda Research. Since Bankman-Fried’s conviction and 25-year sentence, the FTX estate has focused on asset recovery and customer reimbursement.
In the latest court filing, FTX alleges both NFT Stars and Delysium failed to comply with prior agreements to transfer digital tokens to Alameda Ventures, the venture capital arm of Alameda Research. Despite multiple follow-ups, the issuers have not honored their obligations.
NFT Stars Owes Millions in SENATE and SIDUS Tokens
NFT Stars, a digital marketplace, received a $325,000 investment from FTX in November 2021 in exchange for rights to 1.35 million SENATE tokens and 135 million SIDUS tokens. According to FTX, the company has yet to deliver 831,000 SENATE and 83 million SIDUS, despite 15 attempts at contact between June 2023 and September 2024.
Delysium Withholds AGI Tokens Despite Payment
Meanwhile, AI gaming platform Delysium has allegedly failed to deliver 75 million AGI tokens, for which FTX paid $1 million in January 2022. Although the AGI token launched in April 2023, Delysium unilaterally extended the vesting period from 12 to 48 months and publicly stated in its Discord that it would not honor any token allocation to FTX.
FTX Seeks Court Intervention and Warns Other Issuers
The FTX estate is now seeking court assistance to recover the missing tokens and is requesting damages. The lawsuit marks a broader warning to other crypto projects that received investments from FTX or Alameda Ventures—either return what’s owed or face legal consequences.
Why This Matters
As the FTX bankruptcy saga unfolds, this case highlights the complex entanglements between venture-backed crypto projects and centralized exchanges. For traders and investors, it’s a stark reminder of the risks tied to token vesting agreements and platform solvency.
FAQs
1. Why is FTX suing NFT Stars and Delysium?
FTX is suing these companies for failing to deliver crypto tokens they were contractually obligated to remit in exchange for prior investments made by FTX’s venture arm, Alameda Ventures.
2. How much is FTX claiming in unpaid tokens?
FTX alleges that NFT Stars owes 831,000 SENATE and 83 million SIDUS tokens, while Delysium (Kurosemi Inc.) owes 75 million AGI tokens.
3. What is the status of FTX’s repayment to customers?
The FTX estate is actively pursuing legal action and asset recovery to repay creditors and affected users. Some repayments have started, but many claims are still unresolved.
4. What did Delysium say about the AGI tokens?
Delysium publicly stated on its Discord channel that it would not allocate AGI tokens to FTX and unilaterally extended the vesting period from 12 to 48 months.
5. Could other crypto projects face lawsuits from FTX?
Yes. The FTX estate has warned that more legal actions could be taken against other firms that refuse to return assets owed to the exchange.