FTX sues NFT Stars and Delysium to recover $100M in tokens

The FTX Estate has filed lawsuits against token issuers NFT Stars Limited and KUROSEMI INC. (doing business as Delysium) in Delaware bankruptcy court, seeking the return of over 83 million SIDUS (CRYPTO:SIDUS), 831,000 SENATE (CRYPTO:SENATE), and 75 million AGI (CRYPTO:AGI) tokens, along with damages and sanctions for breach of contract and bankruptcy violations.

FTX Trading and the FTX Recovery Trust allege that these companies failed to deliver tokens owed under Simple Agreements for Future Tokens (SAFTs) entered into with Alameda Ventures, FTX’s (CRYPTO:FTT) venture arm.

According to court documents, Alameda Ventures paid $1 million in January 2022 for 75 million AGI tokens from Delysium, which launched in April 2023 with a vesting schedule. However, Delysium allegedly extended the vesting period unilaterally to 48 months and refused to transfer tokens, citing FTX’s bankruptcy as justification.

In the case against NFT Stars, FTX claims it paid $325,000 in November 2021 for rights to 1.35 million SENATE tokens and 135 million SIDUS tokens.

While NFT Stars initially delivered some tokens, it ceased further transfers after FTX’s bankruptcy filing, leaving over 831,000 SENATE and 83 million SIDUS tokens outstanding.

FTX states it made repeated attempts-15 times to NFT Stars and 13 times to Delysium-between June 2023 and September 2024 to resolve the matter without litigation, but received no response.

The lawsuits seek immediate return of the tokens, damages for contract breaches, and sanctions for violations of the automatic stay protections under U.S. bankruptcy law.

“We urge token and coin issuers to return assets that rightfully belong to FTX, and are willing to initiate litigation barring adequate engagement,” emphasised the FTX Estate.

This legal action is part of FTX’s ongoing efforts to recover assets for creditors following its collapse in November 2022, when mismanagement and misuse of customer funds led to bankruptcy and significant losses.

According to FTX, recovering these tokens will help boost the funds available for creditor repayments and is critical to the estate’s restructuring plan.

At the time of reporting, the FTX price was $0.9441.