FTX tries $ 3.9 billion Clawback from Genesis

FTX tries $ 3.9 billion Clawback from Genesis

Court documents submitted on May 3rd Remove that FTX tries to reclaim funds in the form of returned loans, withdrawn liquidity and collateral from the other bankruptcy platform Genesis.

The total amount that is about $ 3.88 billion for all companies associated with Genesis.

accused of having made the misconduct of FTX possible

In the documents that the lawyers of FTX submitted to court on May 3, it is claimed that Genesis was one of the main ludios who made it possible for the FTX group to get away with their almost careless behavior. The bankruptcy team of the Bankrotten Stock Exchange continues to legitimize their application by saying that genesis has been largely repaid in contrast to other FTX crowls.

Genesis was one of the most important feeder funds for FTX and significantly involved in his fraudulent business model. At a time in 2021, Genesis Global Capital (GGC) had outstanding loans of over $ 8 billion to the FTX debtor Alameda Research Ltd. In contrast to other FTX creditors and customers, Genesis was rejected to a large extent.

"The complaints of the FTX debtors against Genesis in relation to certain these repayments represent considerable acts of contestation in the FTX cases in accordance with Chapter 11."

If you consider that insolvency proceedings are about making the creditors healthy again, this seems to be rather contrainting.

Nevertheless, 0.188 billion US dollars of the attempted recovery loans, which were repaid by the FTX Group to Genesis, represent a similar “strategy” as that used in another lawsuit against another bankrupt crypto platform, voyager. Another attempt in the amount of $ 273 million is the pledge of Alameda collateral to Genesis, which apparently used for the purpose, which should serve collateral by definition.

Auctioned assets also on the game

The threeest part of the Clawback attempt is the request to return funds that have already been withdrawn from Genesis.

As stated in the request of the FTX Group, over $ 1.8 billion in genesis liquidity were deducted from the FTX platforms. To express it clearly: FTX wants the money from Genesis.

From this claim, $ 1.6 billion in assets of Genesis itself and a further $ 213 million belonged to GGC International, a company associated with Genesis, which is even classified as a non -debtor, which makes the attempt even more shocking.

ftx wants to reclaim $ 3.9 billion from Genesis.

1. $ 2.1 billion loan repayments /security deposit
2. 1.8 billion US dollars of FTX stock exchange cancellations 3. May 2023

Unfortunately, the real problem with this second attempt is not simply the lightning -fast approach of the FTX Group towards everyone who had previously done business with it in the falsely assumption that they have complied with their duty of care.

The real problem with this second attempt is that he creates a precedent when the application is actually accepted. Even if this is contested, other crypto platforms could feel justified in similar situations now that the rubicon has been exceeded to take identical attempts.

.