The bankrupt cryptocurrency exchange FTX look for recover nearly $4 billion in funds from Genesis Global Capital, also bankrupt, according to a recent court filing. Genesis, a subsidiary of DCG (Digital Currency Group), had loaned nearly $8 billion to Alameda Research, an FTX affiliate, before FTX filed for bankruptcy in November. Genesis itself filed for bankruptcy in January.
Repayment and withdrawals before bankruptcy
The court filing reveals that Alameda repaid $1.8 billion in loans to Genesis and pledged to pay an additional $273 million to the company within 90 days of filing for bankruptcy. FTX. Additionally, Genesis pulled $1.6 billion from FTXwhile Genesis Global Capital International pulled in $213 million over the same period.
Purpose of redistributing funds to creditors
FTX’s lawsuit aims to recover the money received by Genesis and Nondebtor Affiliates, for the purpose of distributing recovered funds among all other creditors involved in the FTX Chapter 11 cases. These creditors include several million customers who are owed more than $11 billion at the time of filing. balance sheet of FTX.
A hearing is scheduled for May 25 to discuss FTX’s motion to recover funds from Genesis Global Capital. The outcome of this hearing will be crucial in determining the distribution of funds among creditors and could have a significant impact on the potential recovery of the exchange.
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