FTX Sues NFT Stars and Kurosemi Over Unreturned Tokens

Highlights:

• FTX has taken action against two companies for failing to return tokens tied to past agreements.
• The exchange stated that both firms ignored repeated requests to settle and deliver the assets.
• FTX is planning more lawsuits as it works to recover funds and prepare for the next round of creditor payments.

FTX, a crypto exchange that collapsed in 2022, has filed lawsuits against NFT Stars Limited and Kurosemi Inc. after repeated efforts to recover tokens failed. The lawsuits, filed in a Delaware bankruptcy court, accuse both firms of withholding digital assets that FTX says are essential to fulfilling its commitments to creditors. The exchange noted that it had made multiple attempts to settle the matter privately. However, neither company responded to their communications.

(1/3) FTX today announced that to recover estate assets, FTX has commenced legal action against certain token and coin issuers which own FTX assets and have been unwilling to engage.

— FTX (@FTX_Official) April 29, 2025

The lawsuit comes after the two firms failed to respond to messages from the FTX estate. The company noted that it would continue to pursue similar cases if other token issuers do not cooperate. The companies involved refused to negotiate following several calls for them to do so, prompting the exchange to escalate the matter to court.

FTX said it had contacted NFT Stars and Kurosemi several times between mid-2023 and late 2024, but the issuers did not respond. FTX has also urged all involved parties to respond and return the assets that belong to FTX.

Details of Breach of Contract

The complaint explains that NFT Stars Limited did not fulfill its agreement to deliver tokens despite receiving payment in late 2021. NFT Stars also failed to deliver the full amount of the SENATE and SIDUS tokens and therefore still owed FTX $325,000. Despite 15 communications with an attempt from FTX to recover these assets, there was no response.

In a similar case, FTX also sued Kurosemi Inc., the company behind the gaming platform Delysium, for not transferring 75 million AGI tokens that the exchange purchased in January 2022. FTX paid $1 million for these tokens. Moreover, they were scheduled for a one-year vesting period. In a twist of events, Delysium changed the vesting period to 4 years.

In addition, it refused to distribute any tokens to FTX after the bankruptcy proceedings commenced. The platform even stated in a public Discord message that it would not allocate tokens to the collapsed exchange.

The suit alleges that both firms broke their deals to help FTX launch its recovery plan. Besides asking the court to enforce the contracts and helping to recover the tokens, the exchange has asked the court to award damages for the losses it suffered as a result of the delay.

Ongoing Efforts to Recover Assets and Repay Creditors

As FTX paves the way for its second round of creditor payments, it continues to work on rebuilding its asset base. FTX filed for bankruptcy in November 2022. Meanwhile, the company has managed to recover over $16.3 billion in assets to be distributed to those affected by the collapse.

The estate is pushing forward with more actions if needed. It has warned other issuers to respond before similar measures are taken. Sullivan & Cromwell LLP is the lead counsel in the lawsuits.