FTX pursues NFT Star and Delysium to recover millions in missing tokens

FTX has launched new legal action against NFT marketplace NFT Star and AI platform Delysium, stepping up efforts to recover missing assets for its creditors.

The bankrupt crypto exchange accuses both companies of failing to deliver tokens purchased under binding Simple Agreements for Future Tokens (SAFTs), a standard fundraising method crypto startups use before a token launch.

According to an April 28 statement, FTX repeatedly attempted to claim the tokens before turning to the courts. However, the defunct firm’s efforts proved futile as the entities failed to respond to its entreaties.

Due to this, the failed exchange stated that it is pursuing this legal action to claim what “rightfully belong to FTX.”

These legal moves form part of FTX’s broader strategy to recover assets lost during its collapse. Since entering bankruptcy, the company has sued several major players in the crypto industry, including Binance, to claw back funds.

NFT Star faces allegations over SENATE and SIDUS tokens

According to the filing, FTX’s lawsuit against NFT Star centers around a transaction involving its affiliate, Alameda Ventures, and a subsidiary, Maclaurin Investments.

In November 2021, Alameda Ventures, through Maclaurin Investments, paid NFT Star $325,000 to secure 1.35 million SENATE tokens and 135 million SIDUS tokens tied to the SIDUS HEROES metaverse project.

The SENATE token is the governance asset within SIDUS HEROES. It allows players to vote on key decisions, purchase virtual real estate, and build spacecraft. SIDUS tokens act as the in-game currency for purchases and upgrades.

Under the SAFT agreement, NFT Star was supposed to deliver 5% of the tokens at the project’s launch on Dec. 15, 2021, with the remaining tokens unlocking monthly through October 2023.

Although NFT Star initially delivered some tokens, the distribution stopped abruptly after FTX filed for bankruptcy in November 2022.

As a result, FTX claims that 831,691 SENATE tokens and 83,169,187 SIDUS tokens remain outstanding.

The exchange alleged that NFT Star’s failure to fulfill the agreement violates the contract and breaches bankruptcy protections.

Due to this, FTX is seeking the immediate turnover of the missing tokens and additional damages.

FTX’s action against Delysium

Like in the NFT Star case, Maclaurin Investments paid Delysium $1 million in January 2022 to acquire 75 million AGI tokens.

The original agreement set a 20% token release after a 12-month cliff, followed by quarterly unlocks.

However, Delysium allegedly altered the vesting schedule, extending it to 48 months without FTX’s consent. To complicate matters, Delysium announced on Discord in October 2023 that it would not allocate AGI tokens to FTX, citing the ongoing bankruptcy case.

Meanwhile, Delysium maintained an account on FTX.com and filed a claim seeking over $243,000, representing its account balance as of the bankruptcy filing.

So, FTX argues that bankruptcy law requires Delysium’s claim to be disallowed unless the company transfers the AGI tokens owed.

FTX’s lawsuit demands the immediate return of the AGI tokens, damages for breach of contract, and sanctions for violating bankruptcy protections.

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