FTX Launches Lawsuit Against Token Issuers To Recover Assets

Aliyu Pokima

FTX has taken legal action against two token issuers in a valiant attempt to recover its assets. The embattled exchange says it will begin lawsuits against entities in possession of its assets that refuse to cooperate in a last-ditch attempt to fulfill bankruptcy obligations.

FTX Rolls Out Full Legal Armada Against Token Issuers

According to a press release, FTX says it has opened lawsuits against token issuers with its assets that have avoided negotiations. Per the release, FTX’s latest legal case targets NFT Stars Limited and KUROSEMI for failing to engage with FTX to resolve the issue.

FTX says the decision to head to the courts is a last-ditch effort to bring unresponsive token issuers to the negotiation table. The exchange claims that the duo of NFT Stars Limited and KUROSEMI owes the bankrupt exchange contractually entitled tokens.

Per the statement, the exchange notes that previous attempts to seek an amicable resolution with the duo have gone unanswered.

“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,” said FTX.

FTX is racing to recover its assets to fulfill its obligations to creditors after its implosion in 2022. After its bankruptcy filing, the exchange uncovered a trail of misappropriation with a sizable amount of its assets helped by third-party token issuers.

To fulfill its obligations, FTX unlocked $21M SOL as part of its creditor repayment plans, but the troubled exchange faces an uphill climb.

Beleaguered Exchange Issues Warning To Issuers

In the press release, FTX notes that it will not be resting on its laurels after commencing legal action against KUROSEMI and NFT Stars Limited. The firm says it will double its efforts to recover its assets, urging entities to respond to correspondence on the matter.