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crypto.news 2025-04-29 06:34:00

FTX files lawsuit against NFT Stars and Delysium over undelivered tokens

FTX files lawsuit against NFT Stars and Delysium over undelivered tokens

FTX Trading Ltd. and the FTX Recovery Trust have filed lawsuits against NFT Stars Limited and KUROSEMI INC., the company behind the gaming platform Delysium, for failing to deliver tokens owed to the FTX estate. The action was announced in an Apr. 28 press release. The complaints, filed in a Delaware bankruptcy court, accuse the two issuers of breaching their contracts by withholding assets that FTX claims are essential to its recovery efforts. FTX said it made repeated attempts to engage with NFT Stars and Delysium before turning to litigation. “We urge token and coin issuers to return assets that rightfully belong to FTX,” the estate said in the statement. “Our team continues to work tirelessly to maximize recoveries for the FTX Estate and return funds to creditors.” (1/3) FTX today announced that to recover estate assets, FTX has commenced legal action against certain token and coin issuers which own FTX assets and have been unwilling to engage. — FTX (@FTX_Official) April 29, 2025 FTX’s legal team, led by Sullivan & Cromwell LLP, warned that more lawsuits are expected if other issuers do not cooperate. As part of its larger asset recovery strategy, the estate is actively reaching out to other token and coin issuers and intends to file lawsuits against non-responsive parties. You might also like: Shaquille O’Neal reaches confidential settlement in FTX endorsement lawsuit The lawsuits come as FTX moves forward with its second round of creditor distributions. Following a bankruptcy court-approved plan in October 2024, FTX aims to repay 98% of creditors 119% of their claim values. The second round of payments, which includes Customer Entitlement Claims and General Unsecured Claims, is set to begin on May 30. FTX collapsed in November 2022 after revelations that founder Sam Bankman-Fried misused $8 billion in customer funds. Under the leadership of bankruptcy specialist John Ray III, the estate has recovered between $14.5 billion and $16.3 billion to date. The outcome of the lawsuits against NFT Stars and Delysium could play a role in further boosting creditor repayments as FTX pushes to close one of crypto’s biggest bankruptcy cases. Read more: Backpack launches fund claim process for EU customers following acquisition of FTX’s EU arm

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