FTX Trading Ltd. and the FTX Recovery Trust have filed lawsuits against NFT Stars Limited and KUROSEMI INC., the company behind the Web3 gaming platform Delysium, accusing them of breaching contract terms by withholding tokens owed to the bankrupt crypto exchange’s estate.
According to an April 28 announcement, the complaint, filed in a Delaware bankruptcy court, the legal action marks a fresh move in FTX’s aggressive asset recovery campaign aimed at maximizing returns for creditors. According to the estate, repeated outreach to both NFT Stars and KUROSEMI was met with silence, forcing the legal escalation.
“We urge token and coin issuers to return assets that rightfully belong to FTX,”
the estate said in an April 28 press release.
“Our team continues to work tirelessly to maximize recoveries for the FTX Estate and return funds to creditors.”
Led by legal firm Sullivan & Cromwell LLP, FTX’s recovery team signalled that similar lawsuits could follow if other crypto asset issuers remain uncooperative. The estate is actively contacting more token providers and has warned that parties failing to respond may face litigation.
The lawsuits arrive just weeks before FTX’s scheduled second round of creditor payments, set for May 30. Under a bankruptcy court-approved plan finalized in October 2024, the estate expects to repay 98% of creditors at 119% of their claim values—an unusually high recovery rate for a collapsed exchange. Kraken will process these payments and offer trading fee credits to ensure it does not profit from the distributions.
Since its implosion in November 2022 due to founder Sam Bankman-Fried’s misuse of $8 billion in customer funds, FTX, under the leadership of restructuring expert John Ray III, has clawed back between $14.5 billion and $16.3 billion. The latest lawsuit could boost that total and move the estate closer to closing one of the crypto industry’s most high-profile bankruptcy proceedings.
If you want to read more news articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.
“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
