The FTX Recovery Trust, established to repay creditors during FTX’s bankruptcy process, has filed a $1.15 billion lawsuit against Bitcoin mining company Genesis Digital Assets and its founders, Rashit Makhat and Marco Krohn.
The complaint, filed in Delaware Bankruptcy Court, alleges that the funds in question were transferred by FTX founder Sam Bankman-Fried using misappropriated assets, including customer deposits. The trust is demanding the reversal of these transfers, calling them “fraudulent.”
According to the complaint, the majority of the funds were raised from client assets on the FTX exchange. The trust is considering this lawsuit as part of its long-term collection efforts as it seeks to recoup losses from creditors following the historic 2022 crash. Bankman-Fried was convicted of seven counts, including fraud and conspiracy, and sentenced to 25 years in prison.
FTX Trust stated that Bankman-Fried invested in Genesis Digital through his fund, Alameda Research, at “grossly inflated valuations” between August 2021 and April 2022. According to the Trust, during this period, FTX was on the verge of bankruptcy and Alameda failed to obtain a fair value for its $1.15 billion investment.
The lawsuit also alleges that Bankman-Fried ignored serious warning signs when making investments. These included the energy crisis in Kazakhstan, the disinterest of major investors, unaudited financial records, unsigned documents, and reports of money laundering and tax evasion. Genesis Digital’s valuation surge from $3.25 billion in 2021 to $12.2 billion in just a few months was described as “crazy and out of line,” even by the company’s own board members.
*This is not investment advice.
Source: https://en.bitcoinsistemi.com/new-development-in-the-ftx-case-potential-new-gain-of-1-15-billion/
