FTX Trust Sues Genesis for $1.15 Billion in Fraudulent Transfers
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The FTX Trust has filed a lawsuit against Genesis Digital Assets, its affiliates, and co-founders, seeking the recovery of $1.15 billion allegedly misappropriated by Sam Bankman-Fried (SBF). The lawsuit, filed in the US Bankruptcy Court for the District of Delaware, alleges that SBF fraudulently transferred funds derived from commingled and misappropriated FTX customer deposits to Genesis. The complaint details how SBF's transactions with Genesis benefited him personally while exposing Alameda Research, where he held a 90% stake, to minimal risk. The FTX Trust argues these transfers constitute avoidable fraudulent transfers under US bankruptcy law. Beyond the $1.15 billion, the trust seeks additional funds potentially uncovered during discovery, along with legal fees and interest. This legal action precedes the FTX Recovery Trust's third distribution to creditors, scheduled for September 30, 2025. The lawsuit highlights the ongoing efforts to recover assets lost during the FTX collapse and underscores the complex legal battles surrounding the cryptocurrency exchange's demise. The case underscores the risks involved in cryptocurrency transactions and the importance of due diligence in the industry.
(Source: https://bitcoinist.com/ftx-trust-sues-genesis-to-recover-1-billion/)
