FTX Estate Sues NFT Stars and Kurosemi Over Unreturned Tokens

FTX Still Open to Engagement

The entity overseeing the estate of the collapsed cryptocurrency exchange FTX announced on April 28 that it is commencing legal action against token issuers NFT Stars Limited and Kurosemi Inc. It accuses the two issuers of failing to provide FTX with “contractually entitled tokens.”

In a statement announcing the decision to seek legal recourse, the FTX Estate said it was forced to take action after the accused companies ignored repeated attempts to have the matter resolved amicably. The statement nevertheless suggested FTX Estate is still open to engagement.

“We urge token and coin issuers to return assets that rightfully belong to FTX and are willing to initiate litigation barring adequate engagement. Our team continues to work tirelessly to maximize recoveries for the FTX Estate and return funds to creditors, including by filing two complaints against issuers who have repeatedly ignored our attempts to engage,” the FTX Estate said.

The statement, meanwhile, revealed that FTX is also in the process of contacting other token and coin issuers who owe the collapsed exchange and warned it “will be filing additional suits against non-responsive parties.”

NFT Stars Limited and Kurosemi Inc. are the latest entities to face possible legal action for failing to return funds belonging to the collapsed exchange. FTX Estate has already instituted legal action to recover user funds from other digital asset companies, former FTX executives and celebrities.

The FTX Estate has also gone after Changpeng Zhao, whom it accuses of helping orchestrate events that led to the collapse of the Sam Bankman-Fried exchange. FTX users whose withdrawals right before the exchange collapse exceed a certain threshold have similarly been slapped with lawsuits.