The bankrupt crypto exchange FTX, and its liquidation entity, the FTX Recovery Trust, has started legal actions for reclaiming cryptos allegedly withheld by token issuers. The lawsuit is the latest step in the company’s ongoing efforts to recover billions in estate assets for its creditors.
FTX Files Lawsuit For Return of Cryptos
(1/3) FTX today announced that to recover estate assets, FTX has commenced legal action against certain token and coin issuers which own FTX assets and have been unwilling to engage.
— FTX (@FTX_Official) April 29, 2025
FTX today filed formal complaints this week against NFT Stars Limited and KUROSEMI INC., the latter operating under the name Delysium. In the complaint, FTX has alleged that both companies failed to deliver tokens owed under contractual agreements. According to the complaints, the two issuers repeatedly ignored attempts by FTX to resolve the matter without resorting to litigation.
In a statement, the FTX Estate emphasized its intent to continue pursuing legal remedies if token issuers do not cooperate voluntarily. “We urge token and coin issuers to return assets that rightfully belong to FTX,” the company said, adding that it remains committed to maximizing asset recovery for the benefit of creditors.
FTX is also in the middle of contacting additional issuers and is preparing to file further lawsuits against those that are unresponsive. The legal campaign comes on the heels of another major development. FTX is set to begin distributing $16 billion in cash to creditors starting May 30 . These much-awaited repayments could strengthen liquidity in the crypto market, and may even bring in a bullish run for Bitcoin, Ethereum, and various altcoins.
Amid this, Chinese creditors have raised concerns about the distribution process, due to restrictions on platforms like BitGo and Kraken, which are not accessible within China. As per the last update, FTX has made a considerable amount of redistributions to small creditors. Over 90% of creditors with claims under $50,000 have been fully repaid, as of the second week of April.
For larger creditors, it is being said that they will start receiving the payment in the second quarter of this year and the next FTX repayment will reportedly start from the next month, May 2025.
Also Read: FTX Unleashes $21M in Solana—Will This Trigger the Next Crypto Crash?
