FTX recovery trust sues Genesis Digital Assets for $1.15B

The FTX Recovery Trust, a legal entity established to manage the bankruptcy estate of FTX Trading ￰0￱ its collapse in November 2022, has recently filed a lawsuit aiming to reclaim more than $1 billion in funds that its former CEO, Sam Bankman-Fried, had ￰1￱ a filing dated September 22, which was made at the US Bankruptcy Court for the District of Delaware, the FTX Recovery Trust submitted a complaint against the crypto mining company Genesis Digital Assets (GDA), its associates, and two ￰2￱ to the complaint, they were trying to recover $1.15 billion that was mixed up and improperly used. Additionally, the filing pointed out that these funds were connected to Bankman-Fried’s scam scandal against clients and other creditors at FTX in 2021 and ￰3￱ Bankman-Fried finds himself in trouble again with a scam scandal Concerning the FTX Recovery Trust’s complaint , Sam Bankman-Fried had ordered FTX’s sister cryptocurrency trading firm, Alameda Research, headed by CEO Caroline Ellison, to purchase GDA shares at very high prices exceeding $500 million for just 154 preferred ￰4￱ from this, reliable sources also revealed that the CEO purchased shares of GDA for around $550.9 million after he directly sent money to Rashit Makhat and Marco Krohn, the Co-Founders at ￰5￱ the situation, the filing highlighted that by 2021, Bankman-Fried had successfully transferred billions of dollars in customer funds from ￰6￱ exchange to ￰7￱ this act, the CEO made Alameda spend more than $1.15 billion on expensive GDA shares despite escalating debt to ￰8￱ the other hand, the complaint highlighted that the transfers were purposefully meant to benefit Bankman-Fried ￰9￱ the 90% owner of Alameda, his share of the act was nearly all the profits from GDA’s inflated value and potential success (for both GDA and Bitcoin).

He was supposed to pass losses onto the FTX Group’s creditors and customers to achieve ￰10￱ FTX Recovery Trust aims to recover funds as a result of Bankman-Fried’s actions The lawsuit against Genesis Digital followed the FTX Recovery Trust’s efforts to regain funds connected to the collapse of the ￰11￱ filed for bankruptcy in 2022, and several former executives, such as Bankman-Fried, are currently in prison. Bankman-Fried’s imprisonment came after he ignored obvious warning signs and believed in lies while investing in Genesis ￰12￱ that time, the company in Kazakhstan experienced an energy ￰13￱ also offered Bankman-Fried false financial ￰14￱ the meantime, a bankruptcy court approved a $175 million settlement in 2023 in which Genesis Global Trading — which has no relationship to GDA — agreed to pay ￰15￱ over two years in bankruptcy court, the FTX Recovery Trust began paying out creditors in ￰16￱ plan began with a $1.2 billion payout to claimants and another $5 billion distribution in ￰17￱ is due to release $1.6 billion to creditors on September 30.

Don’t just read crypto ￰18￱ ￰19￱ to our newsletter. It's free .