The creature responsible for handling the cryptocurrency exchange FTX filed a lawsuit aimed at recovering more than $ 1 billion in funds sent by its former CEO, Sam “SBF” Bankman-Fried.
On a Monday submitting to the US Bankruptcy Court for Delaware District, the FTX Recovery Trust Filed A complaint against the 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 false hope.”
According to the filing, the funds were directly tied to “fraud on customers and other credit” at FTX in 2021 and 2022.
The complaint has been accused by the SBF appointed to Alameda Research, Brother FTX company under its CEO, Caroline Ellison, to buy GDA shares “at the overwhelming prices” – more than $ 500 million for 154 preferred shares. He also bought $ 550.9 million in GDA sharing by sending funds directly to two of its co-founders, Rashit Makhat and Marco Krohn.
“By 2021, Bankman-Fried has brought billions of dollars of customer funds to be transferred from the FTX.com exchange to Alameda,” the filing said. “Despite the ballooning owed FTX.com, Bankman-fried has led to Alameda of more than $ 1.15 billion for wildly overvalued GDA sharing.”
Complaint added:
“Transfers are designed to benefit Bankman-Fried: As 90% Alameda owner, he stands up to capture almost all of the reversal from GDA’s enlarged appreciation and potential success (both of GDA and Bitcoin in general) while at the same time emitting losses to FTX group creditors and customers.”
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FTX Trust is still working to recover funds for users
The lawsuit against Genesis Digital followed the efforts of the FTX Recovery Trust to Claw back funds connected to the collapse of the exchange. FTX filed for losses in 2022, and some of its former executives, including Bankman-Fried, delivered time to prison.
According to the complaint, the SBF “relies on the fuzzy misconception and does not notice the red flags” when choosing to invest in Genesis Digital. The company was based in Kazakhstan at that time, experiencing an energy crisis, and allegedly issued financial documents to Bankman-frozen “unrelated to reality.”
In 2023, a court of losses Approved a $ 175 million negotiation Where Genesis Global Trading – No Related to GDA – Sumang -Tow to Pay FTX.
After more than two years in the court of losses, the FTX Recovery Trust began to re -pay creditors in February. The recovery plan began with a $ 1.2 billion payout for the claimants, followed by a $ 5 billion distribution in May. It is expected to be I -unlock $ 1.6 billion For creditors in Sept. 30.
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