FTX Sues NFT Stars and Delysium to Recover Funds from Pre-Bankruptcy Agreements

Bankrupt crypto exchange FTX has sued NFT Stars and Kurusemi (Delysium) to recover funds after the two companies failed to deliver all the digital tokens that FTX had paid for.

FTX Perseus NFT Stars And Kurosemi

The FTX Recovery Trust on Monday filed suit against NFT Stars NFT marketplace and Kurosemi, which does business as Delysium, alleging the two companies failed to deliver crypto tokens promised under investment agreements with Alameda Research's venture arm, Alameda Venture, reports Bloomberg.

In the suit, FTX is seeking to recover 1.35 billion SENATE tokens, 135 million SIDUS tokens, and 75 million AGI tokens. FTX is also seeking to recoup the $88,000 it paid for the SIDUS tokens and the $8.8 million it paid for the SENATE tokens.

The FTX Recovery Trust is winding down the bankrupt exchange's affairs and distributing recovered assets to creditors. The lawsuit is part of that process.

FTX was one of the leading cryptocurrency exchanges that allowed users to buy, sell, and trade various cryptocurrencies such as Bitcoin, Ethereum, Litecoin, and others.

Customers could also store cryptocurrencies by creating a crypto wallet using software or hardware, which is not part of the platform. It was a major player in the crypto exchange market before its collapse in 2022 due to fraudulent activities and misuse of customer funds.

The FTX crypto exchange has come back to life and has started chasing crypto projects that had defrauded its funds. The team has filed a lawsuit against NFT Star, a non-fungible token market platform allowing users to buy, sell, and trade NFTs, and Delysium, a project building a virtual world where humans and AI Virtual Beings coexist on a blockchain. The project aims to create an open-world, AI-powered, and player-owned MMO game in a cyberpunk setting, set in 2070.

In a charge sheet tabled before the U.S. Bankruptcy Court in Delaware, the FTX Recovery Trust claims that NFT Stars and Delysium did not deliver the digital tokens FTX had paid for. Despite FTX trying many times to resolve the issue with these companies, they haven’t responded or delivered the tokens. The FTX team noted that they reached out multiple times to both companies without success.

FTX Wants Its +$1.3M Back

In the case against marketplace NFT Stars, FTX claims it paid $325,000 in November 2021 for rights to 1.35 billion SENATE tokens and 135 million SIDUS tokens. While NFT Stars initially delivered some of the tokens, it allegedly failed to complete further transfers following FTX's bankruptcy filing.

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.

Neither NFT Stars nor Delysium responded to requests for comment.