FTX Claws Back: Exchange Sues Token Issuers for Phantom Assets

FTX’s lawyers shift from bankruptcy firefighting to offense—filing suits against projects that promised collateral but delivered vaporware. Another day, another crypto IOU gone sideways.

The move exposes the industry’s dirty secret: half the ’assets’ backing tokens are just handshake deals and hopium. But hey, at least the lawyers are getting paid in real fiat.

FTX has launched legal action against NFT Stars Ltd. and KUROSEMI INC. (d/b/a Delysium) for failing to deliver tokens it is entitled to under contract. This step follows numerous attempts to resolve the issue without litigation. FTX plans to reach out to other token and coin issuers with outstanding assets and will file additional lawsuits against those who remain unresponsive. The company urges these parties to engage promptly to avoid further legal action.