FTX Trading Ltd. and the FTX Recovery Trust have sued NFT Stars Limited and KUROSEMI INC.

FTX Trading Ltd. and the FTX Recovery Trust have filed lawsuits against NFT Stars Limited and KUROSEMI INC. in a Delaware bankruptcy court to return assets to the FTX estate.

Both lawsuits, announced via X post by FTX on Monday morning, aim to reclaim assets linked to the FTX Bankruptcy. FTX claims both parties breached contracts by withholding key token transfers that were crucial for the estate’s recovery process.

Despite repeated outreach attempts and calls for cooperation with both defendants, they remained uncooperative, which led FTX to pursue formal litigation to protect creditors and enforce agreements.

“Issuers who have not engaged in good faith to return assets will be met with litigation,” said Sullivan & Cromwell LLP, FTX’s legal counsel.

This approach supports the recovery plan after the FTX collapse, which has seen over $14.5 billion returned to creditors. The estate previously stated its preference for out-of-court resolutions and endeavors to maximize creditor recoveries.

While open to negotiation, the estate will pursue legal avenues as necessary to achieve this goal. This strategy balances the firm’s commitment to efficient resolution with the need for litigation where cooperation is lacking.

The Delysium AI agent lawsuit pertains to a dispute over tokens. According to court filings, Alameda Ventures (now Maclaurin Investment) paid $1 million in early 2022 for 75 million $AGI tokens. These tokens were to be released in 2023 under a set vesting timetable.

Delysium allegedly altered this vesting schedule without approval and refused to grant tokens to FTX. They attributed this to issues arising from the FTX Bankruptcy. A company spokesperson on Discord stated they would not be allocating any tokens due to the ongoing bankruptcy proceedings.

Another complaint focuses on NFT Stars failing to deliver millions of tokens after FTX’s collapse. In November 2021, FTX paid $325,000 for rights to SENATE and SIDUS tokens.

Although NFT Stars initially transferred some tokens, it allegedly ceased cooperation and did not release the remaining tokens. Legal filings claim they still owe over 831,000 SENATE and 83 million SIDUS tokens.

FTX argues this breach occurs in violation of their contracts and the U.S. bankruptcy law’s automatic stay. The outcome against marketplace NFT Stars could influence how token issuers respond during future crypto restructurings.

FTX is pursuing substantial monetary damages and court-imposed sanctions for alleged contractual breaches that go beyond the recovery of tokens. These lawsuits form part of a broader mission to enforce accountability within the decentralized finance ecosystem.

The platform’s sudden collapse last year caused significant financial distress for numerous investors and counterparties.

Securing restitution from entities still holding FTX-linked assets is crucial for mitigating the impact and facilitating recovery efforts. Now, backed by court-sanctioned enforcement mechanisms, FTX is aiming to close the substantial financial gaps and ensure fair distribution of funds to those affected.

As these cases progress, their outcomes could set valuable precedents for future bankruptcy-related claims in the rapidly evolving crypto markets.

FTX, once a leading crypto exchange, declared bankruptcy in November 2022 after revealing a $8 billion customer fund shortfall. Investigations showed that Alameda Research, a crypto firm closely linked to FTX, diverted client assets to fund risky and largely unsuccessful speculative trades.

The bankruptcy case unfolded over 18 months and saw founder Sam Bankman-Fried sentenced to 24 years in prison for fraud and conspiracy.

Now, under the restructuring leadership of John Ray III, the firm is prioritizing recovering assets and pursuing claims against those who contributed to the losses encountered by creditors. Central to this effort is the latest lawsuit, which aims to secure the return of assets and ensure compensation for the customers affected by the actions of the companies involved.