FTX Sues NFT Stars and Delysium Over Undelivered Tokens in Legal Recovery Effort

FTX Trading Ltd. and the FTX Recovery Trust have filed lawsuits in a Delaware bankruptcy court against NFT Stars Limited and KUROSEMI INC., the company behind the gaming platform Delysium, for breaching contracts by withholding tokens essential to the FTX estate's recovery efforts. Following repeated attempts to negotiate a resolution, FTX opted for litigation as part of its broader asset recovery strategy. The lawsuits are a component of FTX's efforts to boost creditor repayments, with a second round of payments slated to begin on May 30, 2025. FTX's legal team, led by Sullivan & Cromwell LLP, warned that additional lawsuits may be initiated against other non-compliant token and coin issuers. This legal action comes amid ongoing negotiations and recovery efforts following FTX’s collapse in November 2022, which saw the company mismanage billions in customer funds. The outcome of this lawsuit could further influence the dynamics of crypto bankruptcy recoveries and creditor distributions.