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FTX Vs Genesis: The $3.9 Billion Crypto Showdown

Press Releases Crypto News Bitcoinist FTX Vs Genesis: The $3.9 Billion Crypto Showdown

FTX, the bankrupt cryptocurrency exchange, is trying to recover almost $3.9 billion in cash from Genesis Global Capital LLC and its affiliate, GGC International. This move could be viewed as an attempt to restart its exchange and generate returns from its operations.

The funds in question include $1.8 billion in loans and $273 million in collateral given to Genesis by Alameda Research, a now-defunct cryptocurrency trading house run by Sam Bankman-Fried. The loans and collateral were provided shortly before Alameda Research and the exchange filed for bankruptcy.

FTX Takes Legal Action To Recover Billions In Crypto

FTX Group has filed a court motion in the District of Delaware seeking to modify the automatic stay and commence adversary proceedings against Genesis Global Capital and its affiliated debtors. The fallen exchange group intends to adjudicate and liquidate their preference and other avoidance and related claims against the Genesis Debtors, including claims pursuant.

FTX moves to claw back $3.9 billion from Genesis.

1. $2.1 billion loan repayments/collateral pledge
2. $1.8 billion FTX exchange withdrawals pic.twitter.com/1SsW8yoPck

— FTX 2.0 shareholder (in spe) (@AFTXcreditor) May 3, 2023

In addition, FTX Group has accused Genesis, one of its main feeder funds, of playing a crucial role in its fraudulent business model. According to the court filing, Genesis had outstanding loans of over $8 billion to FTX Debtor Alameda Research in 2021.

However, unlike other creditors and customers, Genesis was largely repaid. The fallen exchange is now seeking to recover funds from Genesis through Avoidance Claims, which relate to alleged preferential transfers, fraudulent transfers, and other avoidable transactions.

The Avoidance Actions seek to claw back funds received by Genesis and non-debtor affiliates in the 90 days before the exchange’s bankruptcy filing. These

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Author: Ronaldo Marquez

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