FTX Trust seeks to claw back $1B from Genesis Digital
The lawsuit alleged that former FTX CEO Sam Bankman-Fried directed investments in shares of a crypto mining company in Kazakhstan — funds the exchange’s trust now wants returned.
The entity responsible for handling cryptocurrency exchange FTX’s bankruptcy filed a lawsuit seeking to recover more than $1 billion in funds sent by its former CEO, Sam “SBF” Bankman-Fried.
In a Monday filing in the US Bankruptcy Court for the District of Delaware, the FTX Recovery Trust filed a complaint against crypto mining company Genesis Digital Assets (GDA), its affiliates and two of its co-founders as part of its efforts to recover $1.15 billion of “commingled and misappropriated funds.”
According to the filing, the funds were directly tied to Bankman-Fried’s “fraud on customers and other creditors” at FTX in 2021 and 2022.