FTX tries to recoup $4 billion from Genesis in a battle of broken platforms

FTX tries to recoup $4 billion from Genesis in a battle of broken platforms

The bankrupt cryptocurrency exchange wants to recover billions from the bankrupt cryptocurrency lender, claiming it was “instrumental” to FTX’s “fraudulent” business model.

FTX intenta recuperar USD 4,000 millones de Genesis en una batalla de plataformas quebradas

Cryptocurrency exchange FTX is attempting to recover about $4 billion from cryptocurrency lender Genesis, which is also bankrupt, and from a British Virgin Islands-based entity that is still solvent, as part of efforts to recover value for investors. creditors.

In a brief filed May 3 with the New York Bankruptcy Court, a group of FTX lawyers were requesting $1.8 billion in loans and a $273 million guarantee, money allegedly provided to Genesis by Alameda Research, FTX’s sister company.

  • A cryptocurrency influencer was notified of the lawsuit over the FTX case through a tweet

FTX is also seeking to recover $1.6 billion in withdrawals allegedly made by Genesis and another $213 million allegedly withdrawn by its British Virgin Islands-based entity GGC International before it filed for Chapter 11 bankruptcy on September 11. November.

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

The filing claims Genesis was “repaid in large part” of its nearly $8 billion in loans made to Alameda, “unlike other FTX creditors and customers.”

FTX claimed that the bankrupt lender was “one of FTX’s main feeder funds and critical to its fraudulent business model.”

The exchange’s lawyers are requesting a refund under bankruptcy law, which allows recovery of “avoidable transfers” that occur in a 90-day period before a company files for bankruptcy.

  • “Cryptocurrency is dead in America,” according to tech billionaire Chamath Palihapitiya
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FTX’s previous returns have centered on $3.2 billion in payments made to its former executives, a $460 million investment made by Alameda in venture capital firm Modulo Capital, and some $93 million in political donations made by founder Sam Bankman-Fried and other former top executives.

Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.

Keep reading:

  • A cryptocurrency influencer was notified of the lawsuit over the FTX case through a tweet
  • “Cryptocurrency is dead in America,” according to tech billionaire Chamath Palihapitiya
  • Lawyers for FTX victims have difficulty notifying Shaquille O’Neal
  • Sam Bankman-Fried pleads not guilty to bribing a Chinese official and other charges in newly filed superseding indictment
  • Sam Bankman-Fried to propose a revised bail package “by next week”
  • FTX filing shows “massive shortfall” in company assets
  • Demis Hassabis, CEO of Google DeepMind, claims that we could see the arrival of artificial general intelligence “in the next few years”

Investments in crypto assets are not regulated. They may not be suitable for retail investors and the entire amount invested may be lost. The services or products offered are not directed or accessible to investors in Spain.

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