FTX Sues NFT Stars and Delysium Over Undelivered Tokens
FTX has initiated legal proceedings against NFT Stars Limited and Delysium, seeking to recover digital assets allegedly withheld from its estate.
The lawsuits are the latest in its ongoing efforts to reclaim funds and maximize creditor recoveries following its collapse in November 2022.
Token Allegations
The defunct crypto exchange announced on April 29 that it had filed two formal complaints after multiple attempts to engage with the firms in question were ignored. The suits allege that NFT Stars and Delysium failed to transfer tokens to which the firm is contractually entitled.
Legal filings in the case against Delysium state that Alameda Ventures, now Maclaurin Investment, paid $1 million in January 2022 for rights to receive 75 million AGI tokens. These coins officially launched in April 2023 with a vesting structure allowing 20% to unlock after 12 months, followed by quarterly releases.
However, Delysium allegedly changed the terms by extending the period to 48 months without FTX’s consent and refused to transfer any tokens, citing ongoing bankruptcy proceedings.
The complaint against NFT Stars claims that the exchange paid $325,000 in November 2021 to secure 1.35 million SENATE tokens and 135 million SIDUS tokens. While some coins were delivered before FTX’s bankruptcy filing, the company asserts that over 831,000 SENATE and 83 million SIDUS remain unpaid.
FTX alleges breach of contract and a violation of the automatic stay triggered by its bankruptcy protection.
“We urge token and coin issuers to return assets that rightfully belong to FTX, and are willing to initiate litigation barring adequate engagement,” the Estate said in a statement. “Our team continues to work tirelessly to maximize recoveries for the FTX Estate and return funds to creditors.”
The company also confirmed that it is in discussions with several other token issuers and warned that further legal action would follow if they don’t cooperate.
Recovery Efforts
These lawsuits come amid the defunct exchange’s broader recovery campaign, which has already seen some success. On February 18, 2025, the company began distributing recovered funds to creditors, starting with approved claims under $50,000 in the Convenience Class.
The next round of disbursements is scheduled for May 30, 2025, with the record date set on April 11. This one will cover Class 5 Customer Entitlement Claims, Class 6 General Unsecured Claims, and additional approved Convenience Claims.
The initiative follows a court-approved reorganization plan finalized in October 2024 that projects average recoveries of 119% per claim, with some creditors receiving up to 140% in cash. FTX estimates that total asset recoveries will range from $14.7 billion to $16.5 billion, aided by successful recovery efforts from the U.S. Department of Justice and global regulators.
The post FTX Sues NFT Stars and Delysium Over Undelivered Tokens appeared first on CryptoPotato.
Read More
FTX Sues NFT Stars and Kurosemi over $1.3M Token Shortfall
FTX Sues NFT Stars and Delysium Over Undelivered Tokens
FTX has initiated legal proceedings against NFT Stars Limited and Delysium, seeking to recover digital assets allegedly withheld from its estate.
The lawsuits are the latest in its ongoing efforts to reclaim funds and maximize creditor recoveries following its collapse in November 2022.
Token Allegations
The defunct crypto exchange announced on April 29 that it had filed two formal complaints after multiple attempts to engage with the firms in question were ignored. The suits allege that NFT Stars and Delysium failed to transfer tokens to which the firm is contractually entitled.
Legal filings in the case against Delysium state that Alameda Ventures, now Maclaurin Investment, paid $1 million in January 2022 for rights to receive 75 million AGI tokens. These coins officially launched in April 2023 with a vesting structure allowing 20% to unlock after 12 months, followed by quarterly releases.
However, Delysium allegedly changed the terms by extending the period to 48 months without FTX’s consent and refused to transfer any tokens, citing ongoing bankruptcy proceedings.
The complaint against NFT Stars claims that the exchange paid $325,000 in November 2021 to secure 1.35 million SENATE tokens and 135 million SIDUS tokens. While some coins were delivered before FTX’s bankruptcy filing, the company asserts that over 831,000 SENATE and 83 million SIDUS remain unpaid.
FTX alleges breach of contract and a violation of the automatic stay triggered by its bankruptcy protection.
“We urge token and coin issuers to return assets that rightfully belong to FTX, and are willing to initiate litigation barring adequate engagement,” the Estate said in a statement. “Our team continues to work tirelessly to maximize recoveries for the FTX Estate and return funds to creditors.”
The company also confirmed that it is in discussions with several other token issuers and warned that further legal action would follow if they don’t cooperate.
Recovery Efforts
These lawsuits come amid the defunct exchange’s broader recovery campaign, which has already seen some success. On February 18, 2025, the company began distributing recovered funds to creditors, starting with approved claims under $50,000 in the Convenience Class.
The next round of disbursements is scheduled for May 30, 2025, with the record date set on April 11. This one will cover Class 5 Customer Entitlement Claims, Class 6 General Unsecured Claims, and additional approved Convenience Claims.
The initiative follows a court-approved reorganization plan finalized in October 2024 that projects average recoveries of 119% per claim, with some creditors receiving up to 140% in cash. FTX estimates that total asset recoveries will range from $14.7 billion to $16.5 billion, aided by successful recovery efforts from the U.S. Department of Justice and global regulators.
The post FTX Sues NFT Stars and Delysium Over Undelivered Tokens appeared first on CryptoPotato.
Read More