Cryptocurrency exchange FTX is in search of to get better around $4 billion from similarly bankrupt cryptocurrency lender Genesis and a still-insolvent entity based within the British Virgin Islands – as a part of an effort to get better value for creditors.
In a lawsuit filed May 3 in New York Bankruptcy Court, lawyers for FTX sought a $1.8 billion loan and $273 million in collateral allegedly provided to Genesis from FTX’s sister trading company, Alameda Research.
FTX can be in search of to get better $1.6 billion in withdrawals allegedly made by Genesis and one other $213 million allegedly delisted by BV-based entity GGC International before it collapsed into Chapter 11 bankruptcy on Nov. .
FTX desires to get better $3.9 billion from Genesis.
1. Loan repayment/collateral in the quantity of USD 2.1 billion
2. $1.8 Billion FTX Withdrawals pic.twitter.com/1SsW8yoPck— FTX 2.0 Shareholder (in spe) (@AFTXcreditor) May 3, 2023
The filing claims that Genesis has been “largely paid off” of nearly $8 billion in loans to Alameda, “unlike other FTX creditors and clients.”
FTX claimed that the bankrupt lender was “one in all the primary funds tied to FTX and instrumental to its fraudulent business model.”
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Lawyers for the exchange are in search of a recall under bankruptcy law that may allow it to get better “avoidable transfers” that occur within the 90-day period before the corporate filed for bankruptcy.
Previous recalls by FTX centered on $3.2 billion in payments made to former executives, a $460 million investment by Alameda in enterprise capital firm Modulo Capital, and roughly $93 million in political donations by founder Sam Bankman-Fried and others former bosses.
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