FTX to retrieve $3.9 billion from Genesis - A non-bankrupt affiliate, GGC International Ltd., and the insolvent digital asset lender Genesis Global Ca
FTX to retrieve $3.9 billion from Genesis – A non-bankrupt affiliate, GGC International Ltd., and the insolvent digital asset lender Genesis Global Capital LLC is being sued by FTX Group in an effort to recover close to $3.9 billion in cash and cryptocurrency.
According to court documents submitted on Wednesday, the funds are related to $1.8 billion in loans and $273 million in collateral that Sam Bankman-Fried’s now-defunct cryptocurrency trading company Alameda Research Ltd. provided to Genesis Global Capital just before it and FTX both filed for bankruptcy.
According to documents filed with the court, they also concern assets that Genesis Global Capital took from FTX’s trading platform prior to the company’s bankruptcy for a total of $1.6 billion and $213 million.
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See Tweet Below:
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
FTX is attempting to recoup the money using bankruptcy laws intended to prevent favoritism of one type of creditor over another. Transfers that take place up to 90 days before a corporation files for bankruptcy are referred to as avoidable transfers.
In the past, FTX has concentrated its clawbacks on the $3.2 billion in payments made to its former executives, the $460 million Alameda invested in the venture capital firm Modulo Capital, and the roughly $93 million in political contributions made by the company’s founder Sam Bankman-Fried and other former top officials.
Financial recovery through bankruptcy is not always successful.
Requests for comment from FTX and Genesis representatives were not immediately fulfilled.