FTX Sues NFT Firms Over Missing Tokens in $1.3M Asset Dispute

FTX, the collapsed cryptocurrency exchange, has revealed plans to sue NFT Stars Limited and Kurosemi Inc. over claims they failed to deliver tokens as part of a deal involving Delysium, warning that more legal actions could follow.

In a statement issued on April 28, FTX said it is reaching out to multiple token and coin issuers over outstanding digital assets tied to the exchange and plans to file further lawsuits against those who fail to respond. The company urged involved parties to engage cooperatively to avoid legal action.

The lawsuit accuses both companies of allegedly violating their investment contracts by failing to transfer the digital assets specified in the original agreement. “We urge token and coin issuers to return assets that rightfully belong to FTX, and are willing to initiate litigation barring adequate engagement. Our team continues to work tirelessly to maximize recoveries for the FTX Estate and return funds to creditors,” FTX stated. 

The defunct crypto exchange’s newest lawsuit marks a heightened push by the bankrupt crypto exchange to reclaim funds in a bid to repay creditors, more than two years after its dramatic collapse in November 2022.

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FTX initiated its creditor repayment process in February, beginning with smaller claims under $50,000, classified as “convenience class” claims. A second round of distributions, covering larger claims such as customer entitlements and unsecured debts, is scheduled for late May.

FTX Lawsuits

The lawsuit comes on the heels of a settlement reached by former NBA star Shaquille O’Neal, who resolved claims brought by investors over losses tied to the downfall of FTX. 

O’Neal’s legal settlement forms just one piece of a sweeping multidistrict lawsuit in which investors are pursuing up to $21 billion in damages from a wide array of FTX insiders, advisers, and celebrity promoters—an amount well beyond the $9.2 billion currently recoverable through bankruptcy. 

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Other high-profile figures named in the litigation include NFL quarterback Tom Brady, supermodel Gisele Bündchen, former NBA forward Udonis Haslem, baseball legend David Ortiz, tennis champion Naomi Osaka, and investor Kevin O’Leary.

The latest legal actions taken by FTX emphasize the ongoing efforts to resolve outstanding claims and recover assets tied to the company’s pre-bankruptcy dealings. With more lawsuits likely to follow, the case underscores the complexity of the exchange’s financial entanglements as it works to settle remaining issues.

Read More

• Backpack Begins Claims Process for Former FTX EU Customers
• FTX $11.4B Payout Locks Crypto at 2022 Lows—Bullish or Brutal?
• FTX/Alameda Unstakes 3.03M SOL, Raising Concerns Over Potential Impact

MICHAELA

Michaela is a news writer focused on cryptocurrency and blockchain topics. She prioritizes rigorous research and accuracy to uncover interesting angles and ensure engaging reporting. A lifelong book lover, she applies her passion for reading to deeply explore the constantly evolving crypto world.

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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Daily is the official publication of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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