FTX Files Lawsuits Against NFT Stars and Kurosemi to Recover Lost Assets

Bankrupt cryptocurrency exchange FTX is attempting to recover its money to pay back to its creditors. As part of these efforts, the firm has sued two companies, NFT Stars and Kurosemi, for unpaid digital tokens.

The lawsuits, which were filed on Friday in a Delaware bankruptcy court, claim that NFT Stars and Delysium did not deliver all the digital tokens, like cryptocurrencies or NFTs, that FTX had paid for.

Moreover, FTX said that it tried many times to contact these companies and resolve the issue but they didn’t respond or deliver the tokens.

“We contacted both companies on multiple occasions in an attempt to cooperate and resolve this matter amicably, but to date, neither company has responded to our communications or taken any steps to deliver the tokens or cooperate in any way,” FTX said in a statement on April 28.

The firm added that it is contacting other companies about similar issues with FTX’s assets and will file more lawsuits against those who don’t cooperate.

“We are contacting several token issuers and third parties who hold or have dealt with FTX digital assets to cooperate in returning these assets to the estate. We will be filing additional lawsuits to collect unpaid tokens and other assets where our attempts at cooperation are met with indifference or hostility,” FTX warned.

The firm has announced this initiative on its X post. The firm stated that it is taking legal action to get back tokens it paid for but never received as part of its efforts to recover money for those it owes. FTX is suing Delysium and NFT Stars because they didn’t deliver tokens that FTX paid for.

As for NFT Stars, FTX claims it paid $325,000 in November 2021 to buy 1.35 million SENATE tokens and 135 million SIDUS tokens. And in the case against Delysium, FTX says its trading company, Alameda Research, paid $1 million in January 2022 to buy 75 million AGI tokens. The plan was for these tokens to be released in April 2023, with 20% becoming available after 12 months and the rest gradually over time.

However, the release timeline was extended to 48 months and then stopped completely when FTX went bankrupt in November 2022. FTX is asking the court to give them the remaining tokens and extra money to cover the profits they missed out on.

Neither NFT Stars nor Delysium responded to requests for comment.

Also Read: FTX Sues Binance and Changpeng ‘CZ’ Zhao for $1.8 Billion