FTX Targets NFT Star and Delysium to Retrieve Millions in Lost Tokens

FTX has initiated legal proceedings against the NFT marketplace NFT Star and the AI platform Delysium, intensifying its efforts to recover lost assets for its creditors.

The insolvent cryptocurrency exchange alleges that both companies failed to provide tokens acquired through binding Simple Agreements for Future Tokens (SAFTs), which are commonly used by crypto startups for fundraising prior to a token’s launch.

In a statement released on April 28, FTX indicated that it made multiple attempts to retrieve the tokens before resorting to legal recourse, noting that its efforts went unacknowledged by the involved parties.

As a result, the struggling exchange announced that it is pursuing this lawsuit to reclaim what it considers to be its rightful assets.

These legal actions are part of FTX’s broader initiative to recover assets lost amidst its collapse. Since declaring bankruptcy, the company has sought to reclaim funds from several prominent entities within the cryptocurrency sector, including Binance.

### NFT Star’s Allegations Regarding SENATE and SIDUS Tokens

The lawsuit against NFT Star primarily focuses on a particular transaction involving FTX’s affiliate, Alameda Ventures, and its subsidiary, Maclaurin Investments.

In November 2021, Alameda Ventures paid NFT Star $325,000 to acquire 1.35 million SENATE tokens and 135 million SIDUS tokens connected to the SIDUS HEROES metaverse initiative.

The SENATE token serves as the governance token within the SIDUS HEROES ecosystem, enabling players to participate in significant decisions, acquire virtual property, and construct spacecraft. The SIDUS tokens are utilized as in-game currency for transactions and enhancements.

According to the SAFT agreement, NFT Star was obligated to release 5% of the tokens at the project’s launch on December 15, 2021, with the remainder to be distributed monthly until October 2023.

Although NFT Star initially provided a portion of the tokens, the distribution ceased abruptly after FTX’s bankruptcy filing in November 2022.

Consequently, FTX asserts that 831,691 SENATE tokens and 83,169,187 SIDUS tokens are still outstanding.

The exchange contends that NFT Star’s failure to uphold the agreement constitutes a breach of contract and infringes upon bankruptcy protections.

Thus, FTX is demanding the immediate return of the outstanding tokens, along with additional damages.

### FTX’s Case Against Delysium

In a similar fashion to the NFT Star situation, Maclaurin Investments transferred $1 million to Delysium in January 2022 to obtain 75 million AGI tokens.

The initial agreement stipulated that 20% of the tokens would be released following a 12-month cliff, followed by quarterly distributions.

However, Delysium allegedly modified the vesting schedule without FTX’s approval, extending it to 48 months. To further complicate matters, Delysium stated on Discord in October 2023 that it would not distribute AGI tokens to FTX due to the ongoing bankruptcy case.

At the same time, Delysium retained an account on FTX.com and submitted a claim for over $243,000, representing its account balance at the time of the bankruptcy filing.

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

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