FTX Sues Token Issuers NFT Stars Limited and KUROSEMI INC. (operating as Delysium) for Failing to Deliver Contractually Obligated Tokens

Bankrupt cryptocurrency exchange FTX is planning to sue NFT Stars Limited and KUROSEMI INC. (operating as Delysium) for failing to deliver tokens as agreed upon and cooperate in returning assets to the FTX estate.

This follows unsuccessful attempts to resolve the issue without litigation, according to a statement on April 29, 2025.

The lawsuits are part of FTX’s broader efforts to recover assets and pay back customers affected by the exchange’s collapse in November 2022.

“We have pursued all avenues to resolve these issues amicably, but unfortunately, some token issuers have refused to cooperate in returning the assets they hold,” said a spokesperson for the FTX Recovery Trust.

“We are now focused on using legal channels to ensure that these parties honor their obligations and that the FTX estate is able to maximize recoveries for creditors and customers.”

The complaints follow the commencement of bankruptcy proceedings for FTX.com, Inc. (FTX) in November 2022, after a massive fraud led to billions in customer losses.

The company is now undergoing Chapter 11 bankruptcy (reorganization) in the U.S., aiming to restructure the company and pay back creditors through a court-supervised process.

This contrasts with Chapter 7 bankruptcy, which usually leads to liquidation (selling off assets to pay creditors).

The process is overseen by the U.S. Bankruptcy Code, but FTX’s global operations also require coordination with international legal systems.

Bankruptcy assets are distributed according to a strict hierarchy of claims:

* Those with collateral (e.g., loans backed by specific assets) are paid first from the sale of that collateral.

* Costs of the bankruptcy process (like legal fees or trustee compensation) take priority.

* Certain claims, like employee wages or taxes, may rank higher than general unsecured claims.

* General Unsecured Creditors: Includes customers, vendors, or others without collateral (most FTX customers fall here).

* Shareholders or owners (e.g., FTX’s investors) are last and often receive nothing unless all creditors are fully paid.

In FTX’s case, customer claims (e.g., for lost crypto deposits) are a major focus, treated as unsecured claims but with potential priority.

Assets in the estate are liquidated (sold for cash) or, in FTX’s case, recovered through lawsuits or negotiations (e.g., against token issuers like Delysium). Cryptocurrencies may be converted to fiat currency for distribution, though some plans allow in-kind distributions (e.g., returning Bitcoin to customers).

A court-approved plan outlines how assets will be distributed. FTX’s plan, still under development, aims to repay customers based on the value of their accounts at the time of bankruptcy (November 2022), adjusted for market conditions. The plan requires creditor approval and court confirmation, balancing fairness and feasibility.

Once the plan is approved, the trustee or administrator distributes assets to creditors according to the priority scheme. Payments may be made in installments if assets are recovered over time (e.g., as FTX wins lawsuits). In FTX’s case, the Recovery Trust oversees distributions to ensure transparency and compliance.

FTX’s collapse left billions in customer losses due to fraud and mismanagement. The bankruptcy estate is recovering assets through:

* Lawsuits: Such as those announced on April 29, 2025, aiming to recover undelivered tokens or funds.

* Clawbacks: Of improper transfers, especially to insiders who misappropriated funds.

* Liquidation: Of remaining FTX holdings, including cryptocurrency and equity investments.

The goal is to maximize the asset pool available for customer repayments, which is overseen by the FTX Recovery Trust.

These lawsuits follow unsuccessful attempts to resolve the issues with token issuers through negotiation.

The aim is to ensure that these parties cooperate in returning the assets they hold to the FTX estate.

“We are focused on completing this process and will be announcing additional lawsuits against other non-responsive token issuers in due course,” said the spokesperson.

After FTX announced its bankruptcy in November 2022, a large-scale effort to recover assets for the FTX estate began.

The company’s collapse had a significant impact on the cryptocurrency industry and broader financial markets.