In a recent court filing, FTX, a bankrupt cryptocurrency exchange, has revealed its attempt to recover nearly $4 billion from Genesis Global Capital, another bankrupt company. The funds were allegedly loaned to Alameda Research, an FTX-affiliated entity, in the weeks leading up to FTX’s bankruptcy in November. Genesis was largely repaid with $1.8 billion and pledged $273 million by Alameda Research, according to the motion. Genesis filed for bankruptcy itself in January.
FTX has initiated the Avoidance Actions to recover the funds received by Genesis and non-debtor affiliates, as they believe that the funds can be shared with all other creditors of the FTX Debtors in the FTX Chapter 11 Cases. FTX owes several million customers over $11 billion as of the time of filing of FTX Chapter 11 Cases, according to the court filing.
Hearing scheduled for May 25
A hearing has been scheduled for May 25 to discuss the motion filed by FTX. The motion seeks 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.
