Bankrupt Crypto Exchange FTX Aims to Recover $4B from Crypto Lender Genesis

FTX, a now-bankrupt cryptocurrency exchange, has accused Genesis of receiving $93 million from the company’s sister trading company, Alameda Research. Prior to FTX filing for Chapter 11 bankruptcy on November 11th, the company’s legal team has alleged that the funds were not given to other FTX creditors and customers. In a recent New York Bankruptcy Court filing, FTX’s legal team is now seeking these funds under bankruptcy laws.

Previous FTX clawbacks have targeted $3.2 billion in payments to former executives, a $460 million investment from Alameda into venture capital firm Modulo Capital, and the $93 million from founder Sam Bankman-Fried and other executives. This ongoing battle to recover billions of dollars from Genesis exemplifies the complexities of bankruptcy proceedings and the high risks in the cryptocurrency industry.

Nevertheless, despite FTX’s efforts to receive some funding, lawyers and legal teams are still asking for millions for their services, resulting in a total bill for legal services in the first quarter of $103 million.

Robert Wilson
Robert Wilson

As the overseer of NicheBot's editorial content, I am committed to ensuring that all information published on our website is both accurate and relevant to our readers. My fervent support for the crypto industry has led me to closely monitor the developments within it since 2012, and I have contributed extensively to discussions and debates surrounding the world of Bitcoin.

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