Cryptocurrency exchange FTX is seeking to recover about $4 billion from also-bankrupt cryptocurrency lender Genesis and a still-solvent British Virgin Islands entity part of an effort to recover value for creditors.
In a May 3 court filing with New York Bankruptcy Court, lawyers for FTX sought a $1.8 billion loan from FTX's sister trading firm, Alameda Research, and an alleged $273 million collateral pledge to Genesis. FTX is also seeking to recover $1.6 billion all egedly withdrawn by Genesis and $ 21111111ce withdrawn from the exchange by its british virgin islands-back entity, ggc inteernrational, beple it fell into chapter 11 ban Kruptcy On Nov. 11. Genesis' Nearly $ 8 Billion Loan to Alameda Has Been "Substantially Repaid," The Filing said, “unlike other FTX creditors and customers.”
FTX said the bankruptcy lender was "one of FTX's primary feeder funds and was instrumental to its fraudulent business model." Lawyers for the exchange are seeking recoveries under bankruptcy law that would allow it to recover "avoidable transfers" that occurred in the 90 days before the company declared bankruptcy.
FTX's previous kickbacks centered around $3.2 billion in payments to its former executives, Alameda's $460 million investment in venture capital firm Modulo Capital, and about $93 million in payments from founder Sam Bankman-Fried and other former executives. polit ical donations.
