As part of its Chapter 11 bankruptcy case, FTX has filed a number of high-profile lawsuits. Among other things, they’re targeting Binance, former CEO Changpeng Zhao, NFT Stars, and Delysium. Filed in Delaware bankruptcy court, these lawsuits are pursued to recoup misappropriated funds and assets that were allegedly diverted just in advance of FTX’s collapse. These legal actions highlight FTX’s efforts to recover as much money as possible for creditors.

One of these suits is directed against Binance and its boss Changpeng Zhao to recover $1.76 billion in crypto. FTX doesn’t dispute that this amount was sent to Binance, arguing that it was sent there under a repurchase agreement entered into in July 2021. FTX claims that after countless efforts to settle the issue—often over the course of a full year—Binance has simply not responded to these communications.

Besides the suit filed against Binance, FTX aims to sue NFT Stars and Delysium. According to FTX, these firms received inappropriate payments made from FTX funds. In a subsequent announcement, the company defended its decision, claiming there had been “many unanswered efforts” to communicate with each of the two companies.

contacting numerous other token and coin issuers regarding FTX assets and will be filing additional suits against non-responsive parties - FTX

FTX, now in bankruptcy, is trying to reclaim the money from its former founder, Anthony Scaramucci. These funds are tied to outlays already authorized by the previous FTX CEO Sam Bankman-Fried. These funds, it is being reported, were used for sponsorship and investment agreements.

Delysium AGI, the token for Delysium which launched in April 2023, achieved an all-time high of $0.672 in May 2024. Yet since then, it has dramatically tanked, dropping by over 90% and now trading at just $0.067. While Alameda Research received a share of the tokens, those were subject to a vesting schedule. After 1 year, 20% of the tokens become unlocked.

Together with all of these FTX legal actions, FTX is working to recover as many assets as possible and maximize value for creditors through the bankruptcy court. The goal of the lawsuits is to hold accountable all those who, according to the complaint, benefited from socialities and misuse of FTX funds.

Shaquille O’Neal settled an FTX lawsuit, although the settlement was filed under seal.