FTX’s bankruptcy took another step forward as the company’s bankruptcy committee began recovering $3.9 billion from Genesis.
in a document On May 3, FTX stated its intention to initiate legal action against Genesis Global Capital and other affiliates.
The filing calls Genesis the “principal feeder fund” for both FTX and Alameda, and says Genesis received a total of $3.8 billion in remittances from FTX.
Specifically, FTX debtors repaid $1.8 billion in loans and provided Genesis with $273 million worth of collateral. FTX debtors also allowed Genesis Global Capital and GGC International to withdraw $1.6 billion and $213 million, respectively, from FTX.com.
As a result, the FTX bankruptcy committee said it “will seek to recover” funds that Genesis obtained through improper conduct. It aims to pay off millions of creditors already owed more than $11 billion.
FTX said it is only asking for limited relief, allowing it to apply for and receive judgment on its claim. FTX said that any attempt to enforce the claim would take place in the event of Genesis’ insolvency — not in the event of FTX’s insolvency.
FTX sells SUI token contract for less than 1,000x
When Mysten Network’s SUI token began trading in the crypto market on May 3, previous lawsuits related to FTX assets also attracted attention.
In 2022, FTX and related companies purchased token contracts, enabling them to raise 888 million SUI. At press time, the token is currently worth $1.38, meaning the FTX team could have bought back the contracts for $1.2 billion.
However, FTX switched to selling these token contracts in March and completed the sale on April 14. As a result, they sold those contracts for $1 million—about 1,000 times less than that. If you wait until today, these contracts have a redeemable token value.
FTX also sold $95 million worth of Mysten Labs stock and its SUI contract.
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According to Cryptoslate