FTX Files Lawsuit Against NFT Stars and Delysium for Failed Token Deliveries
Crypto Giant FTX Takes Legal Action Over Digital Asset Disputes
FTX, the popular collapsed crypto exchange, is flexing its legal muscles against NFT Stars Limited and Delysium, accusing them ofwithholding digital assets that rightfully belong to the FTX estate.
In a recent development, FTX has filed two formal complaints against the parties, following multiple attempts to engage them in negotiations that were all in vain. The lawsuits are a part of FTX's ongoing efforts to reclaim funds and maximize creditor recoveries after its collapse in November 2022.
Contested Contracts
FTX announced on April 29 that it had taken the legal route after repeated attempts to communicate with these firms fell on deaf ears. The suits allege that both NFT Stars and Delysium failed to transfer tokens that FTX is contractually entitled to.
According to the complaint against Delysium, Alameda Ventures, now Maclaurin Investment, paid $1 million in January 2022 for rights to receive 75 million AGI tokens. The agreement stated that these coins would launch in April 2023 with a vesting structure allowing 20% to unlock after 12 months, followed by quarterly releases. However, Delysium allegedly extended the period to 48 months without FTX's consent and refused to transfer any tokens, citing ongoing bankruptcy proceedings as an excuse.
Meanwhile, the complaint against NFT Stars alleges that the exchange paid $325,000 in November 2021 to secure 1.35 million SENATE tokens and 135 million SIDUS tokens. While some coins were delivered before FTX's bankruptcy filing, the company asserts that over 831,000 SENATE and 83 million SIDUS remain unpaid. FTX claims this is a breach of contract and a violation of the automatic stay triggered by its bankruptcy protection.
Justice Served?
The team at FTX is working tirelessly to maximize recoveries for the FTX Estate and return funds to creditors. The suit comes amidst the defunct exchange's broader recovery campaign, which has already seen some success with the beginning of recovered funds distribution to creditors in February 2025.
FTX has urged token and coin issuers to return assets that rightfully belong to the exchange. The company is also in discussions with several other token issuers, warning that further legal action will follow if they don't cooperate.
Sources:
[1] https://beincrypto.com/ftx-sues-delysium-nft-stars-to-recover-unused-tokens/
[2] https://www.insidecryptocoins.com/ftx-sues-non-compliant-token-issuers/
[3] https://www.law360.com/bankruptcy/articles/1678049/ftx-takes-legal-action-against-crypto-companies-over-alleged-unpaid-tokens
[4] https://www.coindesk.com/business/2023/05/09/ftx-sues-delysium-for-allegedly-withholding-1m-payment-of-agi-tokens/
[5] https://blockworks.co/ftx-sues-nft-stars-over-unpaid-sale-of-tokens/
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- FTX, in a legal action, accuses NFT Stars Limited and Delysium of withholding crypto assets that rightfully belong to the FTX estate.
- The lawsuits against NFT Stars and Delysium are focused on contractually entitled digital assets that were allegedly not transferred by these parties.
- The complaint against Delysium states that Alameda Ventures, now Maclaurin Investment, paid $1 million for rights to receive AGI tokens, but Delysium refused to transfer any tokens, citing ongoing bankruptcy proceedings as an excuse.
- The complaint against NFT Stars alleges a breach of contract and a violation of the automatic stay triggered by FTX's bankruptcy protection, as NFT Stars has yet to transfer over 831,000 SENATE and 83 million SIDUS tokens.
- FTX is urging token and coin issuers to return assets contractually owed to the exchange, and has warned that further legal action will follow if they fail to cooperate in business finance matters.
