The defunct exchange FTX has initiated legal action against digital collectible marketplace NFT Stars and the entity behind the gaming platform Delysium, Kurosemi, over a conflict related to undelivered tokens. The lawsuit alleges that both companies violated their investment contracts by not providing the promised digital assets. FTX’s estate has also indicated it might pursue similar legal actions against other issuers who are uncooperative.

**Navigating the Intersection of Digital Agreements and Legal Challenges**

FTX’s advisors have tried to resolve the situation without going to court, reaching out to NFT Stars 15 times and Kurosemi 13 times between June 2023 and September 2024, without receiving any significant response. FTX contends it paid $325,000 in November 2021 for rights to 1.35 million SENATE tokens and 135 million SIDUS tokens from NFT Stars. Initial token transfers were made but ceased after FTX declared bankruptcy.

Similarly, Alameda Ventures (now known as Maclaurin Investments) invested $1 million in January 2022 for 75 million AGI tokens from Kurosemi. Despite the tokens launching in April 2023 with a vesting schedule, Kurosemi allegedly delayed the schedule and failed to transfer any tokens.

At present, SENATE, SIDUS, and AGI tokens are not listed on major exchanges, with their value hinging on the solvency of the issuer and market adoption, both of which are uncertain due to the ongoing lawsuit. This lawsuit marks a significant move in FTX’s efforts to recuperate assets to settle creditor debts after its collapse in November 2022, following revelations of mismanagement by its founder Sam Bankman-Fried, who was convicted of fraud and conspiracy.

FTX is on its way to the second phase of creditor repayments based on a reorganization plan approved in late 2024, aiming to cover larger claims, including customer and general unsecured claims. The exchange’s $11.4 billion in cash reserves is anticipated to fund these creditor payouts, with the goal of ensuring that 98% of creditors receive up to 119% of their original claim value. This move comes amidst a backdrop of increasing cryptocurrency values, leading some creditors to argue for more fair compensation.

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