FTX Hunts Down NFT Star and Delysium in Multi-Million Dollar Token Recovery Mission

Bankrupt exchange plays crypto detective—because nothing says ’trust us’ like chasing vanished assets after the fact.

FTX’s legal team sharpens its claws, targeting high-profile NFT and gaming projects to claw back what’s left of its imploded empire. Spoiler: lawyers always win.

NFT Star faces allegations over SENATE and SIDUS tokens

According to the filing, FTX’s lawsuit against NFT Star centers around a transaction involving its affiliate, Alameda Ventures, and a subsidiary, Maclaurin Investments.

In November 2021, Alameda Ventures, through Maclaurin Investments, paid NFT Star $325,000 to secure 1.35 million SENATE tokens and 135 million SIDUS tokens tied to the SIDUS HEROES metaverse project.

The SENATE token is the governance asset within SIDUS HEROES. It allows players to vote on key decisions, purchase virtual real estate, and build spacecraft. SIDUS tokens act as the in-game currency for purchases and upgrades.

Under the SAFT agreement, NFT Star was supposed to deliver 5% of the tokens at the project’s launch on Dec. 15, 2021, with the remaining tokens unlocking monthly through October 2023.

Although NFT Star initially delivered some tokens, the distribution stopped abruptly after FTX filed for bankruptcy in November 2022.

As a result, FTX claims that 831,691 SENATE tokens and 83,169,187 SIDUS tokens remain outstanding.

The exchange alleged that NFT Star’s failure to fulfill the agreement violates the contract and breaches bankruptcy protections.

Due to this, FTX is seeking the immediate turnover of the missing tokens and additional damages.

FTX’s action against Delysium

Like in the NFT Star case, Maclaurin Investments paid Delysium $1 million in January 2022 to acquire 75 million AGI tokens.

The original agreement set a 20% token release after a 12-month cliff, followed by quarterly unlocks.

However, Delysium allegedly altered the vesting schedule, extending it to 48 months without FTX’s consent. To complicate matters, Delysium announced on Discord in October 2023 that it would not allocate AGI tokens to FTX, citing the ongoing bankruptcy case.

Meanwhile, Delysium maintained an account on FTX.com and filed a claim seeking over $243,000, representing its account balance as of the bankruptcy filing.

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

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