FTX Seeks to Claw Back Nearly $4B in Ongoing Bankruptcy Case
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Nikhilesh De is CoinDesk’s managing editor for global policy and regulation. He owns marginal amounts of bitcoin and ether.
Bankrupt crypto exchange FTX wants to claw back nearly $4 billion in funds from similarly bankrupt Genesis Global Capital, the company said in a court filing Wednesday.
Genesis was “largely repaid” the nearly $8 billion in loans made to Alameda Research, an FTX-affiliated entity in the weeks leading up to FTX’s bankruptcy in November, the motion said. Genesis is a subsidiary of Digital Currency Group, CoinDesk’s parent company. Genesis filed for bankruptcy itself in January.
According to Wednesday’s filing, Alameda repaid $1.8 billion in loans to Genesis and pledged $273 million to Genesis in the 90 days before the various FTX companies filed for bankruptcy. Genesis also withdrew another $1.6 billion from FTX, while Genesis Global Capital International withdrew another $213 million in that same period.
“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,” the filing said.
There will be a hearing on May 25 to discuss the motion.
Edited by James Rubin.
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Nikhilesh De is CoinDesk’s managing editor for global policy and regulation. He owns marginal amounts of bitcoin and ether.
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Nikhilesh De is CoinDesk’s managing editor for global policy and regulation. He owns marginal amounts of bitcoin and ether.
