Skip to main content

FTX Trust Sues Genesis To Recover $1 Billion Allegedly Misappropriated By SBF

An FTX trust has initiated legal action against Genesis Digital Assets, seeking to recover $1.15 billion that it alleges was fraudulently transferred by Sam Bankman-Fried (SBF), the co-founder of the now-defunct cryptocurrency exchange. 

The lawsuit, filed in the US Bankruptcy Court for the District of Delaware, targets Genesis Digital, its affiliates, and co-founders Rashit Makhat and Marco Krohn, demanding the return of funds that the trust claims were derived from commingled and misappropriated assets belonging to FTX.

FTX Trust’s Pursuit Of Fraudulent Transfers

The lawsuit alleges that a significant portion of the disputed funds originated from customer deposits at the FTX.com exchange. The FTX Recovery Trust contends that Bankman-Fried’s transactions with Genesis Digital were “typical examples of fraudulent transfers.”

In 2021, as Bankman-Fried orchestrated these dealings, he stood to gain significantly while risking nothing, since the shares he acquired in Genesis were ultimately held by Alameda Research, where he was a 90% owner.

The complaint outlines a series of claims under US bankruptcy law, asserting that the transfers in question should be deemed avoidable fraudulent transfers under relevant statutes. 

Third Distribution Looms

The trust is seeking not only the recovery of the $1.15 billion but also additional amounts that may be uncovered during the discovery process. Furthermore, the lawsuit requests the reimbursement of attorneys’ fees, interest, and other costs associated with the legal proceedings

This legal maneuver comes as the FTX Recovery Trust prepares for its third distribution to creditors impacted by the collapse of the exchange, with payments scheduled to begin on September 30, 2025. 

FTX

At the time of writing, the collapsed exchange’s native token, FTT, trades at $0.82, after skyrocketing above $1 last week. 

Featured image from CNBC, chart from TradingView.com



from Bitcoinist.com https://ift.tt/nYiX9rJ
Labels:

Comments

Post a Comment

Popular posts from this blog

Coinbase Adds Wormhole To Spot Trading As Solana Infrastructure Tokens Gain Visibility

Coinbase listings still matter, even in a market that likes to pretend every token is already globally accessible. The exchange ’s decision to add Wormhole puts another major infrastructure name in front of a much broader pool of traders. That matters because Wormhole is not just another speculative ticker. It sits inside one of crypto’s most important, and most debated, categories: cross-chain connectivity. For more details, visit the official Coinbase platform. TL;DR Coinbase is adding support for Wormhole’s W token on spot markets. The listing gives a higher-profile venue to a token tied to cross-chain infrastructure. It also keeps Solana ecosystem names in front of mainstream exchange users. Why A Wormhole Listing Is Interesting Bridge and messaging infrastructure often do not get the same retail attention as consumer-facing protocols, but they matter enormously to how liquidity and applications move between ecosystems. Coinbase’s listing helps push t...
Post a Comment
Read more

Ethereum On Exchanges Crashes To Historic Low Amid Market Volatility, A Bullish Signal For Price?

Ethereum saw a bounce back above the $3,000 price market , with bullish sentiment gaining momentum among investors, especially those on centralized exchanges. Even with the market experiencing sideways movements, the overall supply of ETH on crypto exchanges has fallen sharply, hitting unprecedented levels. Lowest Supply Of Ethereum On Exchanges Recent signals from on-chain metrics indicate that the Ethereum market environment is undergoing a quiet yet significant transformation. This unfolding trend is due to the sharp drop in the supply of ETH available on cryptocurrency exchanges. Related Reading: Ethereum Network Fatigue? Monthly On-Chain Transactions Drops As Activity Slows Down As reported by Coin Bureau on the social media platform X, ETH supply on centralized exchanges has hit levels not seen in years. With more holders choosing long-term storage, staking, and self-custody over keeping their assets available for trade, this significant supply drain indicates a change in i...
Post a Comment
Read more

Bitcoin Remains Range-Bound As Volatility Declines – Analyst Explains Price Action

Bitcoin has experienced frustrating price action in recent weeks, leaving investors impatient about its short-term direction. The price has been testing crucial supply levels between $98K and $100K, struggling to break out as uncertainty dominates the market. The lack of a clear move has led to speculation about whether BTC is preparing for a breakout or another correction. Adding to the uncertainty, the market was hit by negative news on Friday when crypto exchange Bybit was hacked, resulting in the theft of $1.4 billion in ETH. The incident caused fear and volatility, briefly dragging prices lower. However, Bybit responded quickly to reassure investors, easing some of the initial panic and stabilizing the market. Despite this, Bitcoin continues to consolidate in a tight range. Crypto expert Daan shared an analysis on X, noting that BTC is still ranging while volatility is steadily decreasing. As price compression increases, traders are on high alert for a potential explosive move....
Post a Comment
Read more