Crypto trading
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- FTX has sued NFT marketplace Stars with hopes of recovering some funds
- The exchange claims that the marketplace didn’t deliver tokens to Alameda Ventures as agreed
- FTX argued that Stars violated bankruptcy protections and breached investment agreements
Defunct crypto exchange FTX has sued NFT marketplace Stars, claiming that it breached investment agreements by not delivering tokens to Alemeda Ventures. The exchange also sued web3 gaming platform Delysium, also known as Kurosemi, and hopes to recover millions of SIDUS, SENATE, and AGI tokens from the two firms. The lawsuit is FTX’s latest attempt to scrape funds to repay its creditors after its collapse in 2022, a sign that it may take longer to compensate its former users.
Crypto trading No Resolution Without Litigation
In a statement, FTX said it went to court because Stars and Delysium didn’t respond to its “attempts to engage […] and seek a resolution without litigation.” It also disclosed that the lawsuit is among many meant to force non-responsive token and coin issuers to return the exchange’s assets to “maximize recoveries for the FTX Estate.”
(2/3) FTX filed two complaints against token issuers NFT Stars Ltd. and KUROSEMI INC. (d/b/a Delysium) for failing to provide FTX with contractually-entitled tokens. The litigation follows numerous unanswered attempts to engage with and seek a resolution without litigation.
— FTX (@FTX_Official) April 29, 2025
FTX hopes to recover 831,000 SENATE, over 80 million SIDUS, and over 70 million AGI tokens valued at around $5 million at current market rates. It also wants the two platforms to pay more for damages, claiming that the tokens appreciated, but the exchange was unable to sell them because they weren’t delivered on time. The tokens have lost more than 90% of their value from their peaks.
According to FTX, Delysium was to deliver AGI tokens worth $1 million to Alameda Research when they launched in 2023. The tokens were to be unlocked in yearly batches, but Delysium extended the unlocking to every four years.
Crypto trading Only a Few Tokens Were Delivered
FTX claims that Stars only delivered a section of SENATE and SIDUS tokens it was supposed to deliver under contract, due to the exchange’s collapse and the bankruptcy proceedings that followed.
The lawsuit comes barely a week after Shaquille O’Neal settled with FTX investors for an undisclosed amount. It also comes two months after the court allowed Three Arrows Capital to request $1.53 billion from FTX, up from the initial $120 million.
With the tokens shedding over 90% of their value, it remains to be seen whether the court will award damages.
