New Development in the FTX Case: Potential New Gain of $1.15 Billion

The FTX Recovery Trust, established to repay creditors during FTX's bankruptcy process, has filed a $1.15 billion lawsuit against Bitcoin mining company Genesis Digital Assets and its founders, Rashit Makhat and Marco ￰0￱ complaint, filed in Delaware Bankruptcy Court, alleges that the funds in question were transferred by FTX founder Sam Bankman-Fried using misappropriated assets, including customer ￰1￱ trust is demanding the reversal of these transfers, calling them “fraudulent.” According to the complaint, the majority of the funds were raised from client assets on the FTX ￰2￱ trust is considering this lawsuit as part of its long-term collection efforts as it seeks to recoup losses from creditors following the historic 2022 crash.

Bankman-Fried was convicted of seven counts, including fraud and conspiracy, and sentenced to 25 years in ￰3￱ Trust stated that Bankman-Fried invested in Genesis Digital through his fund, Alameda Research, at “grossly inflated valuations” between August 2021 and April ￰4￱ to the Trust, during this period, FTX was on the verge of bankruptcy and Alameda failed to obtain a fair value for its $1.15 billion ￰5￱ News: BNB Prepares for Historic Update: Binance Founder CZ Makes Statement The lawsuit also alleges that Bankman-Fried ignored serious warning signs when making ￰6￱ included the energy crisis in Kazakhstan, the disinterest of major investors, unaudited financial records, unsigned documents, and reports of money laundering and tax ￰7￱ Digital's valuation surge from $3.25 billion in 2021 to $12.2 billion in just a few months was described as “crazy and out of line,” even by the company's own board members. *This is not investment ￰8￱ Reading: New Development in the FTX Case: Potential New Gain of $1.15 Billion