FTX Strikes Back: Sues NFT Stars and Delysium for Unpaid Tokens

Legal Battles Heat Up as FTX Aims to Recover Assets

Hold onto your hats, crypto fans! FTX Trading Ltd. and the FTX Recovery Trust aren't messing around anymore. They've just dropped lawsuits on NFT Stars Limited and KUROSEMI INC., the brains behind the gaming platform Delysium, for not coughing up the tokens they owe to the FTX estate. This drama unfolded on April 28, and let me tell you, it's getting intense!

The complaints were slapped down in a Delaware bankruptcy court, and they're accusing these two issuers of straight-up breaking their contracts by holding back assets that FTX says are crucial for their comeback. FTX claims they tried to play nice, reaching out to NFT Stars and Delysium multiple times before pulling the litigation trigger.

"We're calling out all token and coin issuers to give back what rightfully belongs to FTX," the estate declared in their statement. "Our crew is grinding non-stop to get the best recovery for the FTX Estate and shove those funds back to our creditors."

FTX didn't hold back today, announcing they're going full throttle to get their assets back. They're taking legal action against certain token and coin issuers who've been sitting on FTX's assets and refusing to even chat about it.

FTX's legal squad, led by the heavyweights at Sullivan & Cromwell LLP, are warning that more lawsuits are coming if other issuers don't start playing ball. As part of their grand asset recovery master plan, the estate is reaching out to other token and coin issuers and plans to sue anyone who doesn't respond.

These lawsuits are dropping just as FTX is gearing up for their second round of creditor payouts. After getting the green light from a bankruptcy court in October 2024, FTX is aiming to pay back 98% of creditors a whopping 119% of what they're owed. The next round of payments, covering Customer Entitlement Claims and General Unsecured Claims, is set to kick off on May 30. Get ready, folks!

Remember when FTX crashed and burned in November 2022 after that bombshell about founder Sam Bankman-Fried misusing a cool $8 billion in customer funds? Well, under the new leadership of bankruptcy guru John Ray III, the estate has clawed back between $14.5 billion and $16.3 billion so far. Talk about a comeback!

The results of these lawsuits against NFT Stars and Delysium could seriously amp up those creditor repayments as FTX pushes to wrap up one of the wildest bankruptcy cases in crypto history. Stay tuned, because this rollercoaster isn't slowing down anytime soon!