The FTX Estate Has Opened a New Chapter in Its Asset Recovery Efforts.

Bankrupt cryptocurrency exchange FTX has filed lawsuits against token issuers NFT Stars and Kurosemi (operating as Delysium) for failing to deliver tokens promised under investment agreements with FTX's subsidiary, Alameda Ventures.

The lawsuits, filed on Monday in U.S. Bankruptcy Court in Delaware, aim to force the companies to return tokens that FTX claims were purchased through Simple Agreements for Future Tokens (SAFTs). FTX is working to recover funds for its creditors following its collapse in 2022.

"We urge token and coin issuers to return assets that rightfully belong to the FTX Debtors, and are willing to initiate litigation barring adequate engagement," the FTX estate said in a statement.

The FTX bankruptcy, one of the largest in recent history, began in November 2022 after the exchange collapsed and its founder, Sam Bankman-Fried, was arrested on fraud charges. The collapse came amid revelations that around $8 billion in customer funds had been misused by executives to cover risky bets made by FTX's affiliated trading firm, Alameda Research.

The lawsuits are part of FTX's efforts to recoup money for creditors. The exchange previously announced plans to begin distributing recovered funds to creditors this year.

The suits claim that both NFT Stars and Delysium breached the contracts by failing to transfer tokens despite FTX's repeated attempts to resolve the issues outside of court.

The complaints detail specific investment agreements that were allegedly violated. In the case against Delysium, an AI agent blockchain project, FTX claims Alameda Ventures paid $1 million in January 2022 for the right to receive 75 million AGI tokens. The tokens launched in April 2023 with a vesting schedule, starting with 20% unlocking after a 12-month cliff period.

However, Delysium allegedly extended the vesting schedule unilaterally to 48 months and refused to transfer any tokens. A company representative reportedly stated in a public Discord message that they would not allocate any tokens to FTX due to the bankruptcy proceedings.

In the NFT Stars case, a payment of $325,000 was made in November 2021 for rights to 1.35 million SENATE tokens and 135 million SIDUS tokens. While some tokens were initially delivered, NFT Stars allegedly stopped further transfers after FTX filed for bankruptcy.

FTX now claims NFT Stars owes more than 831,000 SENATE tokens and 83 million SIDUS tokens, and that the company's actions constitute breaches of contract and violations of bankruptcy protections.

Between June 2023 and September 2024, FTX's advisors attempted to contact NFT Stars 15 times and Delysium 13 times, but these attempts received no response, according to the complaints.

FTX is seeking immediate return of the assets, damages for breach of contract, and sanctions for alleged violations of bankruptcy protections, including violations related to the automatic stay under U.S. bankruptcy law.

The lawsuits are just one part of FTX's recovery efforts. On February 18, FTX began its initial distributions of recovered funds to holders of approved claims in its Convenience Class. A second round of payments is scheduled to begin on May 30, with a record date of April 11. This distribution will include Class 5 Customer Entitlement Claims, Class 6 General Unsecured Claims, and additional Convenience Claims approved since the initial record date.

The bankruptcy estate's initial distribution targeted "Convenience Class" claims—those with a payout of $50,000 or less—and reached the majority of affected users as part of a creditor repayment program that could total more than $16 billion.

Bankrupt FTX is suing token issuers NFT Stars and Kurosemi over the non-delivery of tokens that were purchased by FTX subsidiary Alameda Ventures. The lawsuits, filed on Monday in U.S. Bankruptcy Court in Delaware, follow failed attempts by FTX to resolve the issues with the issuers.

The lawsuit against NFT Stars concerns a November 2021 investment by Alameda Ventures in the company's SAFT. In exchange for a $325,000 payment, Alameda was to receive 1.35 billion SENATE tokens and 135 million SIDUS tokens.

Initially, NFT Stars delivered some of the tokens, but after FTX filed for bankruptcy, the company ceased further deliveries. As a result, NFT Stars still owes over 831,000 SENATE tokens and 83 million SIDUS tokens, according to FTX.

The complaint also mentions that NFT Stars's actions violate the protections afforded by Chapter 11 of the U.S. Bankruptcy Code.

The lawsuit against Delysium involves a January 2022 investment by Alameda Ventures in the SAFT for the AI agent blockchain project. Alameda paid $1 million for the right to receive 75 billion AGI tokens