FTX Sues NFT Stars, Delysium for Undelivered Tokens Worth $1.325 Million

Bankrupt crypto exchange FTX has initiated legal proceedings against the non-fungible token marketplace NFT Stars and the blockchain gaming firm Kurosemi, which operates as Delysium. The lawsuits, filed in the Delaware bankruptcy court, allege that both firms have failed to deliver tokens that were paid for by FTX, despite repeated attempts to resolve the matter.

FTX's complaint against Delysium states that its defunct trading arm, Alameda Research, paid $1 million in January 2022 for 75 million of the gaming firm’s AGI tokens. The original token launch was scheduled for April 2023, with a vesting schedule that started with 20% unlocking after 12 months. However, the timeframe was extended to 48 months and then halted altogether due to FTX's bankruptcy following its collapse in November 2022.

In the case against NFT Stars, FTX claims it paid $325,000 in November 2021 for 1.35 million SENATE tokens and 135 million SIDUS tokens. After a partial delivery, NFT Stars halted the delivery of the remaining 831,000 SENATE tokens and 83 million SIDUS tokens, citing the bankruptcy proceedings.

FTX is seeking court intervention to recover the remaining tokens plus damages, arguing that the tokens hit a peak value and could have been sold for a profit had they been delivered on time. Delysium’s token AGI reached a peak price of $0.672 in May 2024, but has since lost 90% of its value. SENATE and SIDUS tokens also experienced significant value drops, losing 99% of their peak values.

This legal action is part of FTX's broader effort to recover assets and repay creditors following its collapse. The exchange has been actively pursuing funds it claims are owed, including previous lawsuits against SkyBridge Capital and its founder, as well as against crypto exchange Binance and its former CEO. FTX's recovery trust has indicated that it will continue to take legal action against other firms that are unwilling to refund tokens owed to the exchange.