{"id":49118,"date":"2025-09-23T17:46:34","date_gmt":"2025-09-23T17:46:34","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=49118"},"modified":"2025-09-23T17:46:34","modified_gmt":"2025-09-23T17:46:34","slug":"ftx-trust-sues-genesis-to-recover-1-billion-allegedly-misappropriated-by-sbf","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=49118","title":{"rendered":"FTX Trust Sues Genesis To Recover $1 Billion Allegedly Misappropriated By SBF"},"content":{"rendered":"<div>\n<p>An FTX trust has initiated legal action against Genesis Digital Assets, seeking to recover $1.15 billion that it alleges was fraudulently transferred by Sam Bankman-Fried (SBF), the co-founder of the now-defunct cryptocurrency exchange.\u00a0<\/p>\n<p>The <a href=\"https:\/\/www.bloomberglaw.com\/public\/desktop\/document\/FTXRecoveryTrustvGenesisDigitalAssetsLimitedetalDocketNo125ap5235?doc_id=X4HG09REV5N8TFR1OJN4KPQP97S\" target=\"_blank\" rel=\"noopener nofollow\">lawsuit<\/a>, filed in the US Bankruptcy Court for the District of Delaware, targets Genesis Digital, its affiliates, and co-founders Rashit Makhat and Marco Krohn, demanding the return of funds that the trust claims were derived from commingled and misappropriated assets belonging to FTX.<\/p>\n<h2>FTX Trust\u2019s Pursuit Of Fraudulent Transfers<\/h2>\n<p>The lawsuit alleges that a significant portion of the disputed funds originated from customer deposits at the FTX.com exchange. The FTX Recovery Trust contends that Bankman-Fried\u2019s transactions with Genesis Digital were \u201ctypical examples of fraudulent transfers.\u201d<\/p>\n<p>In 2021, as Bankman-Fried orchestrated these dealings, he stood to gain significantly while risking nothing, since the shares he acquired in Genesis were ultimately held by Alameda Research, where he was a 90% owner.<\/p>\n<p>The complaint outlines a series of claims under US bankruptcy law, asserting that the transfers in question should be deemed avoidable fraudulent transfers under relevant statutes.\u00a0<\/p>\n<h2>Third Distribution Looms<\/h2>\n<p>The trust is seeking not only the recovery of the $1.15 billion but also additional amounts that may be uncovered during the discovery process. Furthermore, the lawsuit requests the reimbursement of attorneys\u2019 fees, interest, and other costs associated with the legal proceedings<\/p>\n<p>This legal maneuver comes as the FTX Recovery Trust prepares for its third distribution to creditors impacted by the collapse of the exchange, with payments <a href=\"https:\/\/www.newsbtc.com\/breaking-news-ticker\/ftx-recovery-trust-set-to-disburse-1-6-billion-by-month-end-ftt-price-skyrockets\/\" target=\"_blank\" rel=\"noopener nofollow\">scheduled <\/a>to begin on September 30, 2025.\u00a0<\/p>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"size-medium\" src=\"https:\/\/www.tradingview.com\/x\/LHCPMrS3\/\" alt=\"FTX\" width=\"1814\" height=\"891\"><\/p>\n<p>At the time of writing, the collapsed exchange\u2019s native token, FTT, trades at $0.82, after skyrocketing above $1 last week.\u00a0<\/p>\n<p>Featured image from CNBC, chart from TradingView.com <\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>An FTX trust has initiated legal action against Genesis Digital Assets, seeking to recover $1.15 billion that it alleges was fraudulently transferred by Sam Bankman-Fried (SBF), the co-founder of the now-defunct cryptocurrency exchange.\u00a0 The lawsuit, filed in the US Bankruptcy Court for the District of Delaware, targets Genesis Digital, its affiliates, and co-founders Rashit Makhat [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-49118","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/49118","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=49118"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/49118\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=49118"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=49118"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=49118"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}