FTX has recently taken legal action against NFT Star and Delysium in an effort to recover missing assets for its creditors. The bankrupt crypto exchange alleges that both companies failed to deliver tokens purchased under binding Simple Agreements for Future Tokens (SAFTs), a common fundraising method used by crypto startups before a token launch.
According to a statement released on April 28, FTX made numerous attempts to claim the tokens from NFT Star and Delysium before resorting to legal action. Unfortunately, both entities failed to respond to FTX’s requests, prompting the exchange to pursue legal recourse to reclaim what it believes rightfully belongs to them.
These legal actions are part of FTX’s broader strategy to recover assets lost during its collapse. Since declaring bankruptcy, the company has initiated lawsuits against several prominent players in the crypto industry, including Binance, in an effort to recoup funds.
The lawsuit against NFT Star focuses on a transaction involving FTX’s affiliate, Alameda Ventures, and its subsidiary, Maclaurin Investments. In November 2021, Alameda Ventures paid NFT Star $325,000 to secure SENATE and SIDUS tokens linked to the SIDUS HEROES metaverse project. The tokens were supposed to be delivered in stages, but the distribution abruptly stopped after FTX filed for bankruptcy in November 2022. As a result, FTX claims that a significant number of tokens remain outstanding, and they are seeking their immediate turnover along with additional damages.
In the case of Delysium, FTX alleges that the company altered the vesting schedule for AGI tokens purchased by Maclaurin Investments without FTX’s consent. Delysium then announced that it would not allocate the tokens to FTX due to the ongoing bankruptcy case. FTX argues that Delysium’s claim for funds in the bankruptcy proceedings should be disallowed unless the company transfers the AGI tokens owed. The lawsuit demands the immediate return of the tokens, damages for breach of contract, and sanctions for violating bankruptcy protections.
Overall, FTX’s legal actions against NFT Star and Delysium highlight the challenges faced by the exchange in recovering assets following its collapse. These cases underscore the importance of regulatory oversight and contractual agreements in the volatile world of cryptocurrency trading.