Cryptocurrency platform FTX has filed lawsuits against two digital asset firms

Cryptocurrency platform FTX has filed lawsuits against two digital asset firms, NFT Stars Limited and KUROSEMI INC., the company behind Delysium

Cryptocurrency platform FTX has filed lawsuits against two digital asset firms, NFT Stars Limited and KUROSEMI INC., the company behind Delysium, over a lack of cooperation in returning tokens.

The lawsuits come after FTX reached out to both firms to discuss the token return but to no avail, the company shared via its official X account.

FTX Sued Firms As No Response Was Made To Previous Attempts

FTX applied to several avenues to reach out to token issuers in order to resolve outstanding payment issues, but to no avail, leading to legal action. The company is focused on recovering every asset that went missing.

“The FTX estate leadership is focused on maximizing the value available for creditors,” a statement reads.

Another lawsuit may be filed against firms that keep FTX-linked assets and fail to respond after estate representatives reached out to all these companies.

The estate stated it would have refrained from legal action by asking token issuers to join cooperative discussions. The FTX team aims to repatriate funds to creditors through transparent standards of fairness.

The legal actions come as FTX is working to recover from its financial collapse, which happened in 2022. Earlier this year, the company began distributing payments to candidates whose claims it approved as valid. Smaller claims under $50,000 were the main focus for these payments, benefiting many affected users.

The second wave of distribution payments will begin on May 30. Beyond the approved claims during the first period, there will be more payments going out in the second distribution phase. The eligible payment categories within the first round of distributions include both general unsecured claims and customer entitlement claims.

The total amount of money that FTX plans to recover for its creditors may exceed $16 billion depending on how assets remain available for the recovery process. The organization stated its team maintains ongoing operation to solve current issues alongside supporting the reorganization process.

FTX Legal Strategy Targets Uncooperative Token Issuers

At the same time, FTX remains in financial and legal distress. The claim value filed against Three Arrows Capital for its collapsed operations surged from $120 million to $1.5 billion in March. New information concerning FTX’s preceding connection with FTX drove a revised strategy.

Meanwhile, Sam Bankman-Fried remains in prison after courts found him guilty on multiple counts of fraud. The court sentenced Bankman-Fried to begin a 25-year prison sentence starting in March 2024. The current FTX management team is focused on standardizing operations while giving value back to users.

The court cases against NFT Stars and Delysium continue as part of what promises to be a long-running series of legal disputes. More legal action against the company seems likely as the organization continues distributing its assets.

In essence, FTX is taking legal measures to highlight its ongoing commitment to ensuring owners get their lost funds. Uncooperative token issuers become the subject of company action as this strategy allows the company to achieve maximum value for creditors. These actions form part of FTX’s multi-step strategy to rebuild trust while stabilizing operations after its failure and Sam Bankman-Fried’s criminal conviction.