- FTX sued NFT Stars and Delysium for allegedly withholding tokens crucial to estate recovery efforts.
- The lawsuits mark part of FTX’s broader strategy to recover assets owed from various token issuers.
- Creditor repayment continues as FTX prepares to begin its next distribution phase by May 30.
FTX Trading Ltd. and the FTX Recovery Trust have filed lawsuits in a Delaware bankruptcy court against NFT Stars Limited and KUROSEMI INC., the developer of the Delysium gaming platform. The estate alleges both companies failed to deliver digital tokens owed under previous agreements, which FTX claims are vital to its asset recovery efforts.
According to an April 28 press release, FTX made repeated attempts to resolve the matter privately before initiating legal proceedings. The estate argues that both NFT Stars and Delysium breached contractual obligations by withholding assets essential to repaying FTX’s creditors. These digital assets were reportedly promised to the FTX estate before its collapse in November 2022.
Legal team signals more lawsuits may follow
Sullivan & Cromwell LLP, which leads FTX’s legal efforts, indicated that further legal action is likely if additional token issuers fail to cooperate. The estate continues to engage with other parties that hold crypto assets tied to FTX’s platform and has made it clear that it intends to pursue recovery from all non-compliant token issuers.
This litigation coincides with FTX’s next round of creditor distributions. After the bankruptcy court approved its repayment plan in October 2024, the estate committed to returning 119 percent of eligible claims to 98 percent of creditors. The upcoming distribution phase, which includes Customer Entitlement and General Unsecured Claims, is scheduled to begin on May 30.
Estate recovery reaches billions under new leadership
Under CEO John Ray III, a bankruptcy expert appointed following Sam Bankman-Fried’s departure, FTX has so far recovered between $14.5 billion and $16.3 billion. These funds are central to repaying victims of the exchange’s collapse. The lawsuits against NFT Stars and Delysium represent a broader campaign to reclaim outstanding digital assets still missing from FTX’s accounts.
The final outcome of the lawsuits may influence the total creditor payouts, as FTX works to resolve one of the largest bankruptcies in crypto history. The estate continues to stress the importance of cooperation from asset holders in its effort to return funds to users.
