Additionally, the FTX Estate has filed a lawsuit against NFT Stars, an NFT marketplace. They’re calling action against Delysium, an AI-powered gaming platform. The lawsuit centers around allegations that both entities failed to deliver tokens owed under investment agreements previously established with Alameda Ventures, an affiliate of FTX. The suit by the Estate requires that we restore all of its assets now. It claims damages for breach of contract and eventual sanctions due to allegedly violating bankruptcy protections.
The contention underlying this lawsuit involves token contracts these made beginning within April 2023. These deals even laid out a vesting schedule for how the tokens were to be distributed over time. According to the terms that were agreed upon, 20% of the tokens vest after a 12-month cliff. The rest of the tokens will then unlock quarterly from there out. Delysium had to take the drastic, but probably necessary, step of extending the vesting schedule unilaterally to 48 months. Similarly, they denied transferring any tokens back to the FTX Estate.
Legal Recourse and Token Recovery
The FTX Estate is seeking a legal judgement to reclaim the assets and uphold the spirit of the original contracts. So, we know the Estate’s legal team is very busy! They seek the return of more than 83 million SIDUS tokens, 831,000 SENATE tokens, and 75 million AGI tokens.
"We urge token and coin issuers to return assets that rightfully belong to FTX, and are willing to initiate litigation barring adequate engagement." - FTX Estate
The suit further alleges that violations of the automatic stay as provided under U.S. bankruptcy law. This law was ostensibly put into place to preserve the assets of companies undergoing bankruptcy proceedings. Through NFT Stars’ and Delysium’s actions, the Estate alleges that they breached these protections.
Attempts at Resolution
Prior to filing the lawsuit, the FTX Estate’s advisors aggressively pursued the NFT Stars and Delysium business deals. They were looking to first settle the issue friendly on these several tries. Between June 2023 and September 2024, the Estate’s advisors reached out to NFT Stars 15 times and Delysium 13 times. The communications efforts did not resonate. They were never able to get the tokens returned or any other mutually agreeable resolution.
Now, the FTX Estate is suing after a good faith resolution through discussion did not come about. This action marks their continued resolve to pluck any and all recoverable assets for the benefit of the estate’s creditors. The Estate’s decision to litigate is already an indication of how grave the circumstances are. They are vigorously committed to insist on adherence to the spirit of their initial investment contracts.
Implications of the Lawsuit
The FTX Estate has sued NFT Stars and Delysium. Scopino explained that this strategic move is the latest example of their overall push to recover assets and maximize value for creditors. The lawsuit’s eventual resolution will have tremendous implications on all token issuers. Firms with comparable arrangements to FTX or its related entities need to be on high alert.
The case exposes the intricacies and dangers of token vesting schedules. It illustrates in a very stark way the essential need to adhere to contractual requirements. The cryptocurrency and NFT lobbies are watching every development in the closely connected legal proceedings with bated breath. What’s more, they are acutely attuned to how these proceedings could influence future cases over digital assets.
