FTX Recovery Trust Sues Genesis Digital for $1.15B

[cryptoenthusiast]

The FTX Recovery Trust has filed a lawsuit in the US Bankruptcy Court for the District of Delaware seeking to claw back $1.15 billion from Genesis Digital Assets (GDA), its affiliates, and co-founders Rashit Makhat and Marco Krohn.

The complaint alleges that Sam Bankman-Fried (SBF) directed Alameda Research to buy GDA shares at “outrageously inflated prices,” including over $500 million for 154 preferred shares and another $550.9 million sent directly to the co-founders.

The filing claims these transfers were part of SBF’s broader fraud on customers and creditors, designed to benefit him personally as the 90% owner of Alameda.

[kelson10]

FTX Recovery Trust suing GDA for $1.15B SBF allegedly pumped $500M+ into inflated shares + another $550M to founders.

[Nahid10]

Crazy numbers — $1.15B clawback case shows how deep Alameda’s reckless spending went under SBF. Court battle gonna be huge. ️