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

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

FTX claims that its defunct trading arm, Alameda Research, paid $1 million in January 2022 for 75 million of Delysium’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 its complaint against NFT Stars, FTX alleges that it paid $325,000 in November 2021 for 1.35 million SENATE tokens and 135 million SIDUS tokens. After a partial delivery, FTX claims that NFT Stars halted the delivery of the remaining 831,000 SENATE tokens and 83 million SIDUS tokens due to the bankruptcy proceedings.

FTX is seeking the court's assistance 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. The peak prices for the tokens in question were $0.672 for AGI, $5.85 for SENATE, and $0.19 for SIDUS, all of which have since lost significant value.

This legal action is part of FTX's broader effort to recover assets and repay creditors following its collapse. The exchange has been working to recompense affected customers and has encountered significant obstacles with NFT Stars and Kurosemi. FTX has threatened similar action against other firms that are unwilling to refund tokens owed to the exchange, underscoring its determination to recover as many assets as possible.