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- The FTX estate has filed a lawsuit against token issuers NFT Stars, and Delysium. They claim they have failed to deliver the tokens owed by Alameda Ventures under their investment agreements.
- These lawsuits were filed at the Delaware bankruptcy court and seek damages, sanctions, and the return of more than 83 million SIDUS and 831,000 Senate tokens.
- FTX asserts that it has made numerous attempts to resolve disputes without litigation, and both firms are accused of contract breaches and violations.
FTX Trading and FTX Recover Trust have sued token issuers NFT Stars (doing business as Delysium) and Kurosemi. They claim that the companies did not deliver on the promises made in the investment agreements they signed with Alameda Research, Alameda Ventures.
You can also find out more about the following: FTX filed a petition in U.S. Bankruptcy Court, Delaware, to compel companies to surrender tokens it claims they purchased via Simple Agreements for Future Tokens or SAFTs.
“We encourage token and coin issues to return assets rightfully belonging to FTX. We are ready to file a lawsuit if adequate engagement isn’t made,” the FTX Estate announced in a Statement.
The lawsuits are the latest step taken by FTX in order to recover assets on behalf of creditors after its collapse, which occurred in November 20, 2022. FTX was once the world’s biggest cryptocurrency exchange. It filed for bankruptcy in November 2022 after it became clear that $8 billion of customer funds were misused to fund risky trades placed by FTX’s trading company, Alameda Research.
The collapse of FTX shook up the entire cryptocurrency industry. It triggered regulatory scrutiny, and resulted in millions of dollars worth losses for investors and customers. Sam Bankman Fried was convicted for fraud and conspiracy. The sentence is: The maximum sentence is 25 years. The company was founded in Restructuring plan The company announced its plan to repay debts earlier in the year.
In order to do this, it collects funds from companies which it believes are owed by FTX. According to court documents, NFT Stars or Delysium failed to fulfill their contractual obligations by not transferring tokens to FTX despite numerous attempts to settle the dispute outside court.
FTX wants the return of assets immediately, damages due to breach of contract and sanctions for alleged bankruptcy protection violations, such as those related with the automatic bankruptcy stay.
The Delysium lawsuit states that Alameda Ventures – now Maclaurin Investment – paid $1 million to Maclaurin Investment in January 2022 to be entitled to receive 75,000,000 $AGI tokens. The tokens went live in April 2023. They were subject to vesting, whereby 20% of the tokens would unlock after a 12-month “cliff” period. Additional tokens could be released quarterly.
Delysium, a blockchain AI project, allegedly unilaterally extended vesting to 48 months, and refused to send any tokens. A company representative stated in a Discord public message that the bankruptcy proceeding would prevent them from allocating tokens to FTX.
FTX alleges that in its case against NFT Stars it spent $325,000 on rights to 1,35 million SENATE and 135,000,000 SIDUS tokens. While NFT Stars initially delivered some of the tokens, it allegedly failed to complete further transfers following FTX's bankruptcy filing.
FTX has said that NFT Stars owes 831,000 SENATE Tokens and 83,000,000 SIDUS Tokens. The company cites breaches of contract, and the violation of an automatic stay.
Between June 2023 to September 2024, FTX advisors tried contacting NFT Stars fifteen times and Delysium thirteen times without success. Decrypt Both have been contacted for comments.
Editor by Sebastian Sinclair
