FTX is suing NFT Star and Delysium to recoup millions in allegedly misappropriated tokens. The exchange is suing to recover assets it says belong to its creditors after its own bankruptcy last fall. This move is part of FTX's broader effort to recoup funds and ensure equitable distribution to those affected by the exchange's collapse.

Legal Pursuit of Missing Tokens

FTX has been making good faith efforts to recover tokens without litigation. The exchange’s legal team has made three different efforts to negotiate the return of the exchange’s assets. These out-of-court efforts to settle the dispute proved ineffective, resulting in today’s court battle.

FTX’s court action is necessary to guarantee the return of these tokens and coins. The suit, first covered on April 28, aims to recover funds from both NFT Star and Delysium. The exchange, for its part, is committed to maximizing value for its creditors.

Dispute with Delysium Over Token Allocation

Delysium, which kept a corporate account on FTX.com, is caught up in the fight as well. The company filed a $243,455.29 claim in the bankruptcy case—an amount equal to Mr. Hargroves’ final account balance at the time the company declared bankruptcy. Delysium announced on Discord in October 2023 that it would not allocate AGI tokens to FTX, citing the ongoing bankruptcy case.

FTX claims Delysium changed the vesting schedule to 48 months instead of six without FTX’s permission. The initial contract had a 12-month cliff and 20% of tokens released immediately, then quarterly unlocks. This very unilateral change in the pro-rata vesting schedule is at the crux of FTX’s claim here against Delysium.

Recovery Efforts from NFT Star

Through Maclaurin Investments, Alameda Ventures also paid NFT Star $325,000 in November 2021. This payment was done in order to reserve 1.35 million SENATE tokens. Moreover, we airdropped 135 million SIDUS tokens related to the SIDUS HEROES metaverse project. In a bid to recover some of its assets, FTX now wants to reclaim these tokens as part of its asset recovery.

Those tokens are specifically tied to the SIDUS HEROES metaverse project. Now, FTX’s legal team is trying to track them down and get them back to return the most money possible to creditors. The exchange is doing something unique in trying to take back the value that these tokens represent.