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- FTX and its Recovery Trust are taking legal action against NFT Stars and Kurosemi, accusing both companies of holding back tokens they were contractually obligated to deliver.
- FTX tried to resolve the issues out of court but received no significant engagement, which resulted in litigation with billions of assets left unaccounted for.
The bankrupt cryptocurrency exchange FTX and the FTX Recovery Trust have launched lawsuits against NFT Stars Limited, an Australian-based NFT marketplace company, and Kurosemi Inc., the developer behind the AI-powered MMORPG Delysium.
These legal actions, filed in Delaware bankruptcy court, stem from allegations that both companies failed to deliver tokens promised under prior contractual agreements. FTX is demanding the return of more than 83 million SIDUS, 831,000 SENATE, and 75 million AGI tokens as part of the lawsuits. To support its case, the exchange has brought on Sullivan & Cromwell as legal counsel and Alvarez & Marsal North America to handle financial advising throughout the proceedings.
In the official statement, FTX said:
We urge token and coin issuers to return assets that rightfully belong to FTX, and are willing to initiate litigation barring adequate engagement. Our team continues to work tirelessly to maximize recoveries for the FTX Estate and return funds to creditors, including by filing two complaints against issuers who have repeatedly ignored our attempts to engage.
FTX’s recovery trust revealed that it had attempted to resolve these disputes out of court through multiple engagements but received no meaningful cooperation. In response, the Recovery Trust has turned to the courts and warned that more lawsuits could follow if cooperation doesn’t improve.
A Strategy to Recover What Was Lost
These legal actions are just one piece of FTX’s push to claw back assets lost during its dramatic collapse in November 2022. The exchange has already filed over 20 lawsuits against various parties as it looks to pay creditors back, targeting parties like Binance, Anthony Scaramucci, SkyBridge Capital, and Crypto.com.
FTX is also going ahead with its second phase of creditor repayment on May 30, 2025, under the reorganization plan sanctioned in October 2024 by the Delaware U.S. Bankruptcy Court. The proposal envisions distribution ranging from $14.7 billion to $16.5 billion, where 98% of the creditors would get between 119% of their allowed value of claim.
As Crypto News Flash reported, FTX started compensating minor creditors in the “Convenience Class” who had claims below $50,000. They have already begun receiving payment in full with an additional 9% interest.
The second payment tranche will pay more unsecured and customer claims, but only if the respective creditors comply with the verification and Know Your Customer (KYC) standards.
Interestingly, 392,000 claims were disqualified after users missed the deadline of March 3, 2025, for KYC compliance.
However, users who began the KYC process still have until June 1, 2025, to complete it. To receive payment, creditors had to verify their claims and select a distribution agent by April 11. FTX has partnered with Kraken and BitGo to assist in the repayment process. Creditors will be able to choose between receiving their distributions in fiat currency or digital assets, adding flexibility to the recovery process.
