Key Points:
- FTX is attempting to recoup $3.9 billion from Genesis, a similarly insolvent cryptocurrency lender.
- Prior to its bankruptcy, Alameda supposedly owed Genesis $1.8 billion.
- Lawyers for the exchange are pursuing the clawback under bankruptcy rules.
FTX is attempting to recoup about $3.9 billion in cash and cryptocurrency from the insolvent digital asset lender Genesis Global Capital and a non-bankrupt subsidiary, GGC International.
According to court documents filed Wednesday, the monies are related to $1.8 billion in loans and $273 million in collateral granted to Genesis Global Capital by Alameda Research, Sam Bankman-Fried’s defunct crypto trading company, just before it crashed into bankruptcy with FTX.
FTX is also attempting to recoup $1.6 billion in alleged Genesis withdrawals and an additional $213 million allegedly removed through its BVI-based business GGC International from the exchange before it filed for Chapter 11 bankruptcy on November 11.
The filing showed that Genesis was mostly compensated for over $8 billion in loans granted to Alameda Research, an FTX-affiliated firm, in the weeks preceding the exchange’s bankruptcy in November. Genesis filed for bankruptcy in January.
“The Avoidance Actions will seek to claw back funds received by Genesis and non-debtor affiliates so that these funds can be shared with all other creditors of the FTX Debtors in the FTX Chapter 11 Cases. These creditors include several million customers owed over $11 billion as of the time of filing of FTX Chapter 11 Cases,” according to the filing.
It is attempting to recoup the monies using bankruptcy procedures meant to guarantee that no creditors are favored over others. Avoidable transfers are ones that occur up to 90 days before a corporation goes insolvent. However, attempts to recoup funds through bankruptcy are not always successful.
Past the exchange, clawbacks have centered on $3.2 billion in compensation to former executives, a $460 million investment by Alameda into venture capital company Modulo Capital, and roughly $93 million in political contributions made by founder Sam Bankman-Fried and other former top commanders.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Harold
Coincu News
Author
News
FTX Seeks To Claw Back Nearly $4 Billion From Genesis
Key Points:
- FTX is attempting to recoup $3.9 billion from Genesis, a similarly insolvent cryptocurrency lender.
- Prior to its bankruptcy, Alameda supposedly owed Genesis $1.8 billion.
- Lawyers for the exchange are pursuing the clawback under bankruptcy rules.
FTX is attempting to recoup about $3.9 billion in cash and cryptocurrency from the insolvent digital asset lender Genesis Global Capital and a non-bankrupt subsidiary, GGC International.
According to court documents filed Wednesday, the monies are related to $1.8 billion in loans and $273 million in collateral granted to Genesis Global Capital by Alameda Research, Sam Bankman-Fried’s defunct crypto trading company, just before it crashed into bankruptcy with FTX.
FTX is also attempting to recoup $1.6 billion in alleged Genesis withdrawals and an additional $213 million allegedly removed through its BVI-based business GGC International from the exchange before it filed for Chapter 11 bankruptcy on November 11.
The filing showed that Genesis was mostly compensated for over $8 billion in loans granted to Alameda Research, an FTX-affiliated firm, in the weeks preceding the exchange’s bankruptcy in November. Genesis filed for bankruptcy in January.
“The Avoidance Actions will seek to claw back funds received by Genesis and non-debtor affiliates so that these funds can be shared with all other creditors of the FTX Debtors in the FTX Chapter 11 Cases. These creditors include several million customers owed over $11 billion as of the time of filing of FTX Chapter 11 Cases,” according to the filing.
It is attempting to recoup the monies using bankruptcy procedures meant to guarantee that no creditors are favored over others. Avoidable transfers are ones that occur up to 90 days before a corporation goes insolvent. However, attempts to recoup funds through bankruptcy are not always successful.
Past the exchange, clawbacks have centered on $3.2 billion in compensation to former executives, a $460 million investment by Alameda into venture capital company Modulo Capital, and roughly $93 million in political contributions made by founder Sam Bankman-Fried and other former top commanders.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Harold
Coincu News
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