The defunct crypto exchange FTX has taken legal action against specific issuers in its latest attempt to recover debts and repay customers.
FTX Trading and the FTX Recovery Trust have filed a lawsuit against certain token issuers who have failed to fulfill their agreements to remit the agreed-upon coins to the exchange. Specifically, the restructuring team sued NFT Stars Limited and Kurosemi Inc. on Monday over compliance issues.
FTX Takes Legal Action to Recover Tokens
FTX was once one of the most prominent cryptocurrency exchanges in the United States before its demise. It filed for bankruptcy in November 2022 after a experiencing a bank run upon reports that founder Sam Bankman-Fried had misappropriated $8 billion in customer funds through sister firm Alameda Research.
Following Bankman-Fried’s conviction and 25-year sentence, the defunct exchange has sought to recompense customers affected by the fallout. Notably, the repayment process is already underway, but the FTX estate has faced major hurdles with two firms, NFT Stars and Kurosemi, also known as Delysium.
The team claims in a complaint filed against both firms in Delaware’s bankruptcy court that they have failed to remit tokens due to Alameda Research’s venture arm, Alameda Ventures, as per the terms of an investment agreement. FTX revealed that it filed the lawsuit after several attempts to contact the token issuers failed.
Token Issuers Unyielding
The lawsuit disclosed that marketplace NFT Stars has failed to fulfill its rights to FTX following an earlier investment. The bankrupt exchange paid $325,000 in November 2021 to the issuer for rights to 1.35 million SENATE tokens and 135 million SIDUS, an agreement that the NFT market has yet to fully honor.
Specifically, FTX claims that NFT Stars owes them 831,000 SENATE and 83 million SIDUS and seeks the court’s help in recovering these funds. Notably, the restructuring team claimed it had contacted the issuer 15 times between June 2023 and September 2024, with no success.
Furthermore, the complaint claimed that the AI gaming platform Delysium had not remitted the 75 million AGI tokens it owed FTX despite 13 attempts to recoup them. FTX paid $1 million for the coins in January 2022, which launched in April 2023.
However, following FTX’s bankruptcy, Delysium extended the initial 12-month vesting period agreed on to 48 months and has not remitted any tokens to the exchange. Also, the project stated in a public Discord statement that it would not allocate any AGI tokens to the collapsed trading platform.
FTX has asked the court to recoup these owed tokens and seeks compensation for damages. The estate has also threatened similar action against other firms that are unwilling to refund tokens owed to the exchange.
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