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FTX files lawsuits against NFT Stars and Kurosemi Inc. for failing to deliver tokens as per agreements, part of asset recovery efforts.
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FTX escalates legal actions to recover assets for creditor payouts, warning of more lawsuits against uncooperative token issuers.
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The bankrupt exchange is set to begin its second round of fund distributions to creditors in May 2025, following prior payments.
FTX initiates lawsuits against NFT companies to recover funds for creditors; more legal actions are anticipated to ensure asset recovery.
FTX Initiates Legal Action to Recover Assets
According to the latest press release, the exchange attempted non-litigation negotiations with both entities multiple times. Nonetheless, these efforts were unsuccessful.
In addition to the current legal actions, FTX revealed that it is also engaging with several other token issuers to recover assets. The company added that further lawsuits will be filed against those who fail to cooperate.
“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, including by filing two complaints against issuers who have repeatedly ignored our attempts to engage,” The FTX Estate’s statement read.
The lawsuits mark a significant escalation in FTX’s strategy to reclaim assets following its bankruptcy filing in November 2022. A liquidity crisis and the revelation of an $8 billion shortfall in its accounts triggered the exchange’s collapse.