The post FTX Trust Seeks to Claw Back $1B from Genesis Digital appeared on BitcoinEthereumNews.com. The entity responsible for handling cryptocurrency exchange FTX’s bankruptcy filed a lawsuit seeking to recover more than $1 billion in funds spent by its former CEO, Sam “SBF” Bankman-Fried. In a Monday filing in the US Bankruptcy Court for the District of Delaware, the FTX Recovery Trust filed a complaint against crypto mining company Genesis Digital Assets (GDA), its affiliates and two of its co-founders as part of its efforts to recover $1.15 billion of “commingled and misappropriated funds.” According to the filing, the funds were directly tied to Bankman-Fried’s “fraud on customers and other creditors” at FTX in 2021 and 2022. Source: Kroll The complaint alleged that SBF directed Alameda Research, FTX’s sister company under its CEO, Caroline Ellison, to purchase shares of GDA “at outrageously inflated prices” — more than $500 million for 154 preferred shares. He also allegedly purchased $550.9 million in GDA shares by sending the funds directly to two of its co-founders, Rashit  Makhat and Marco Krohn. “By 2021, Bankman-Fried had already caused billions of dollars of customer funds to be diverted from the FTX.com exchange to Alameda,” said the filing. “Despite the ballooning debt Alameda owed FTX.com, Bankman-Fried caused Alameda to pay more than $1.15 billion for wildly overvalued GDA shares.”  The complaint added: “The Transfers were designed to benefit Bankman-Fried personally: as the 90% owner of Alameda, he stood to capture nearly all of the upside from GDA’s inflated valuation and potential success (both of GDA and Bitcoin generally) while at the same time externalizing the losses to the FTX Group’s creditors and customers.” Related: Ex-FTX exec’s plea deal still at center of court case FTX Trust still working to recover funds for users The lawsuit against Genesis Digital followed efforts by the FTX Recovery Trust to claw back funds connected to the downfall… The post FTX Trust Seeks to Claw Back $1B from Genesis Digital appeared on BitcoinEthereumNews.com. The entity responsible for handling cryptocurrency exchange FTX’s bankruptcy filed a lawsuit seeking to recover more than $1 billion in funds spent by its former CEO, Sam “SBF” Bankman-Fried. In a Monday filing in the US Bankruptcy Court for the District of Delaware, the FTX Recovery Trust filed a complaint against crypto mining company Genesis Digital Assets (GDA), its affiliates and two of its co-founders as part of its efforts to recover $1.15 billion of “commingled and misappropriated funds.” According to the filing, the funds were directly tied to Bankman-Fried’s “fraud on customers and other creditors” at FTX in 2021 and 2022. Source: Kroll The complaint alleged that SBF directed Alameda Research, FTX’s sister company under its CEO, Caroline Ellison, to purchase shares of GDA “at outrageously inflated prices” — more than $500 million for 154 preferred shares. He also allegedly purchased $550.9 million in GDA shares by sending the funds directly to two of its co-founders, Rashit  Makhat and Marco Krohn. “By 2021, Bankman-Fried had already caused billions of dollars of customer funds to be diverted from the FTX.com exchange to Alameda,” said the filing. “Despite the ballooning debt Alameda owed FTX.com, Bankman-Fried caused Alameda to pay more than $1.15 billion for wildly overvalued GDA shares.”  The complaint added: “The Transfers were designed to benefit Bankman-Fried personally: as the 90% owner of Alameda, he stood to capture nearly all of the upside from GDA’s inflated valuation and potential success (both of GDA and Bitcoin generally) while at the same time externalizing the losses to the FTX Group’s creditors and customers.” Related: Ex-FTX exec’s plea deal still at center of court case FTX Trust still working to recover funds for users The lawsuit against Genesis Digital followed efforts by the FTX Recovery Trust to claw back funds connected to the downfall…