{"id":49174,"date":"2025-09-24T02:16:49","date_gmt":"2025-09-24T02:16:49","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=49174"},"modified":"2025-09-24T02:16:49","modified_gmt":"2025-09-24T02:16:49","slug":"ftx-recovery-trust-sues-genesis-digital-to-recover-1-15-billion","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=49174","title":{"rendered":"FTX Recovery Trust Sues Genesis Digital to Recover $1.15 Billion"},"content":{"rendered":"<div>\n<p><span data-preserver-spaces=\"true\">The FTX Recovery Trust has <\/span><span data-preserver-spaces=\"true\">taken<\/span><span data-preserver-spaces=\"true\"> legal action against Genesis Digital Assets and several <\/span><span data-preserver-spaces=\"true\">people linked to<\/span><span data-preserver-spaces=\"true\"> the company.<\/span> <span data-preserver-spaces=\"true\">They\u2019re<\/span><span data-preserver-spaces=\"true\"> asking the court to help recover around $1.15 billion that they believe was transferred under suspicious circumstances. The lawsuit is being handled in the US Bankruptcy Court in Delaware and is tied to the ongoing fallout from the collapse of FTX.<\/span><\/p>\n<h3><span data-preserver-spaces=\"true\">What the Trust Claims Happened<\/span><\/h3>\n<p><span data-preserver-spaces=\"true\">According to the filing, Sam Bankman-Fried used money from Alameda Research, his hedge fund, to invest in Genesis Digital. But the prices he paid were far higher than what the company was actually worth, according to the trust. <\/span><\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">BREAKING:<\/p>\n<p>The FTX Bankruptcy Trust filed a $1.15 billion lawsuit against Bitcoin mining firm Genesis Digital Assets<\/p>\n<p>\u2014 Rayan Shahid <img decoding=\"async\" src=\"https:\/\/s.w.org\/images\/core\/emoji\/16.0.1\/72x72\/26a1.png\" alt=\"\u26a1\" class=\"wp-smiley\" style=\"height: 1em; max-height: 1em;\"> (@CallmeRaynn) <a href=\"https:\/\/twitter.com\/CallmeRaynn\/status\/1970569978777600185?ref_src=twsrc%5Etfw\" rel=\"nofollow\" target=\"_blank\">September 23, 2025<\/a><\/p>\n<\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p><span data-preserver-spaces=\"true\">The purchases took place between August 2021 and April 2022. The money, they say, came straight from user funds on FTX.com. The complaint specifically names Genesis <\/span><span data-preserver-spaces=\"true\">Digital\u2019s<\/span><span data-preserver-spaces=\"true\"> founders, Rashit Makhat and Marco Krohn.<\/span><\/p>\n<h3><span data-preserver-spaces=\"true\">Warning Signs Were There<\/span><\/h3>\n<p><span data-preserver-spaces=\"true\">The lawsuit <\/span><span data-preserver-spaces=\"true\">points out that there were<\/span><span data-preserver-spaces=\"true\"> several signs <\/span><span data-preserver-spaces=\"true\">suggesting<\/span><span data-preserver-spaces=\"true\"> the deal was risky.<\/span><span data-preserver-spaces=\"true\"> For one, <\/span><span data-preserver-spaces=\"true\">Kazakhstan\u2019s<\/span><span data-preserver-spaces=\"true\"> electricity grid was already under strain from Bitcoin miners moving there after <\/span><span data-preserver-spaces=\"true\">China\u2019s<\/span><span data-preserver-spaces=\"true\"> ban, and Genesis Digital was heavily involved in the region. <\/span><span data-preserver-spaces=\"true\">On top of that<\/span><span data-preserver-spaces=\"true\">, the <\/span><span data-preserver-spaces=\"true\">company\u2019s<\/span><span data-preserver-spaces=\"true\"> financial records <\/span><span data-preserver-spaces=\"true\">weren\u2019t<\/span><span data-preserver-spaces=\"true\"> audited. <\/span><span data-preserver-spaces=\"true\">Reports also linked them to <\/span><span data-preserver-spaces=\"true\">possible<\/span><span data-preserver-spaces=\"true\"> tax issues and money laundering <\/span><span data-preserver-spaces=\"true\">concerns<\/span><span data-preserver-spaces=\"true\">.<\/span><\/p>\n<div class=\"cpp-crypto-chart cpp-crypto-chart-99btc cpp-crypto-chart-btc\" data-coin-symbol=\"btc\" data-price-usd=\"BTC Price (USD)\" data-main-color=\"#4caf05\" data-watermark-image=\"https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/06\/99bitcoins-logo.png\" data-chart-style=\"99btc\">\n<div class=\"cpp-chart-top-section\">\n<div class=\"cpp-chart-info-section\">\n<div class=\"cpp-chart-logo\"><img decoding=\"async\" src=\"https:\/\/cimg.co\/wp-content\/uploads\/2024\/02\/26205235\/btc.svg\" alt=\"btc logo\"><\/div>\n<div class=\"cpp-chart-coin-details\">\n<div class=\"cpp-chart-labels-row\">\n<div class=\"cpp-chart-coin-name\">bitcoin<\/div>\n<div class=\"cpp-chart-price-info\">Price<\/div>\n<div class=\"cpp-chart-market-cap\">Market Cap<\/div>\n<\/div>\n<div class=\"cpp-chart-values-row\">\n<div class=\"cpp-chart-coin-symbol\">BTC<\/div>\n<div class=\"cpp-chart-price\"><\/div>\n<div class=\"cpp-chart-market-cap-value\">$2.26T<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"cpp-chart-selectors cpp-chart-selectors-99btc\"><span class=\"cpp-chart-selector\" data-period=\"24h\">24h<\/span><span class=\"cpp-chart-selector\" data-period=\"7d\">7d<\/span><span class=\"cpp-chart-selector\" data-period=\"all_time\">1y<\/span><\/div>\n<\/div>\n<p><canvas id=\"cpp-chart-68d35369b9c37\" class=\"cpp-chart-container cpp-chart-container-99btc\"><\/canvas><\/div>\n<p><span data-preserver-spaces=\"true\">Despite all this, the investment moved ahead. Within a short time, the <\/span><span data-preserver-spaces=\"true\">company\u2019s<\/span><span data-preserver-spaces=\"true\"> valuation jumped from $3.25 billion to as high as $12.2 billion, which raised eyebrows even inside the company. One board member reportedly called the rise<\/span><span data-preserver-spaces=\"true\"> \u201c<\/span><span data-preserver-spaces=\"true\">insane and off market<\/span><span data-preserver-spaces=\"true\">.\u201d<\/span><\/p>\n<p><strong>DISCOVER: <a class=\"general-link\" href=\"https:\/\/99bitcoins.com\/cryptocurrency\/high-risk-high-reward-crypto\/\" target=\"_blank\" rel=\"nofollow noopener sponsored\">9+ Best High-Risk, High-Reward Crypto to Buy in September2025<\/a><\/strong><\/p>\n<h3><span data-preserver-spaces=\"true\">Founders Allegedly Cashed Out<\/span><\/h3>\n<p><span data-preserver-spaces=\"true\">The trust <\/span><span data-preserver-spaces=\"true\">says<\/span><span data-preserver-spaces=\"true\"> Genesis <\/span><span data-preserver-spaces=\"true\">Digital\u2019s<\/span><span data-preserver-spaces=\"true\"> founders sold <\/span><span data-preserver-spaces=\"true\">about<\/span><span data-preserver-spaces=\"true\"> $551 million worth of their own shares to Alameda during a <\/span><span data-preserver-spaces=\"true\">time<\/span><span data-preserver-spaces=\"true\"> when <\/span><span data-preserver-spaces=\"true\">FTX\u2019s<\/span><span data-preserver-spaces=\"true\"> financial health was already <\/span><span data-preserver-spaces=\"true\">falling apart<\/span><span data-preserver-spaces=\"true\">.<\/span> <span data-preserver-spaces=\"true\">According to the complaint, this was done at the expense of FTX users, and the shares were priced <\/span><span data-preserver-spaces=\"true\">far<\/span><span data-preserver-spaces=\"true\"> above <\/span><span data-preserver-spaces=\"true\">what they should have been<\/span><span data-preserver-spaces=\"true\">.<\/span><span data-preserver-spaces=\"true\"> The lawsuit claims this was a way for the founders to exit a sinking company while taking advantage of misused customer funds.<\/span><\/p>\n<p><strong>DISCOVER: <a class=\"general-link\" href=\"https:\/\/99bitcoins.com\/cryptocurrency\/next-1000x-crypto\/\" target=\"_blank\" rel=\"nofollow noopener sponsored\">Next 1000X Crypto: 10+ Crypto Tokens That Can Hit 1000x in 2025<\/a><\/strong><\/p>\n<h3><span data-preserver-spaces=\"true\">Why <\/span><span data-preserver-spaces=\"true\">It\u2019s<\/span><span data-preserver-spaces=\"true\"> a Big Deal<\/span><\/h3>\n<p><span data-preserver-spaces=\"true\">This is <\/span><span data-preserver-spaces=\"true\">one<\/span><span data-preserver-spaces=\"true\"> part of a larger effort to <\/span><span data-preserver-spaces=\"true\">get back<\/span><span data-preserver-spaces=\"true\"> lost money <\/span><span data-preserver-spaces=\"true\">after<\/span> <span data-preserver-spaces=\"true\">FTX\u2019s<\/span><span data-preserver-spaces=\"true\"> dramatic collapse in 2022.<\/span> <span data-preserver-spaces=\"true\">The <\/span><span data-preserver-spaces=\"true\">trust\u2019s<\/span><span data-preserver-spaces=\"true\"> job is to <\/span><span data-preserver-spaces=\"true\">track down<\/span><span data-preserver-spaces=\"true\"> questionable deals and <\/span><span data-preserver-spaces=\"true\">try<\/span><span data-preserver-spaces=\"true\"> to return <\/span><span data-preserver-spaces=\"true\">those<\/span><span data-preserver-spaces=\"true\"> funds to the <\/span><span data-preserver-spaces=\"true\">people<\/span><span data-preserver-spaces=\"true\"> and organizations that are still owed money.<\/span><span data-preserver-spaces=\"true\"> A win in this case could put a big chunk of that cash back on the table for creditors who have been waiting for answers and repayment.<\/span><\/p>\n<h3><span data-preserver-spaces=\"true\">What Comes Next<\/span><\/h3>\n<p><span data-preserver-spaces=\"true\">The next steps depend on how Genesis Digital and the named parties respond. They might fight the claims in court or try to settle. Either way, the outcome could set a <\/span><span data-preserver-spaces=\"true\">major<\/span><span data-preserver-spaces=\"true\"> precedent for how crypto-related fraud is handled in bankruptcy cases. Other companies and regulators will likely be watching closely, especially if the court finds that these types of inflated deals can be unwound. The results could have ripple effects on how deals are made and evaluated in the crypto space <\/span><span data-preserver-spaces=\"true\">going forward<\/span><span data-preserver-spaces=\"true\">.<\/span><\/p>\n<p><strong><span data-preserver-spaces=\"true\">DISCOVER:\u00a0<\/span><a class=\"general-link\" href=\"https:\/\/99bitcoins.com\/cryptocurrency\/next-crypto-to-explode\/\" target=\"_blank\" rel=\"nofollow noopener sponsored\"><span data-preserver-spaces=\"true\">20+ Next Crypto to Explode in 2025\u00a0<\/span><\/a><\/strong><\/p>\n<p><strong><a class=\"general-link\" href=\"https:\/\/discord.gg\/B7Uk6agkqj\" target=\"_blank\" rel=\"nofollow noopener\"><span data-preserver-spaces=\"true\">Join The 99Bitcoins News Discord Here For The Latest Market Updates<\/span><\/a><\/strong><\/p>\n<div class=\"nnbtc-key-takeaways\">\n<h2 class=\"nnbtc-key-takeaways__title\">Key Takeaways<\/h2>\n<ul class=\"nnbtc-key-takeaways__list\">\n<li class=\"nnbtc-key-takeaways__list-item\">\n        The FTX Recovery Trust is suing Genesis Digital Assets to recover $1.15 billion linked to alleged misuse of user funds.    <\/li>\n<li class=\"nnbtc-key-takeaways__list-item\">\n        Sam Bankman-Fried is accused of using Alameda Research funds to overpay for shares in Genesis Digital between 2021 and 2022.    <\/li>\n<li class=\"nnbtc-key-takeaways__list-item\">\n        Red flags included unaudited financials, power issues in Kazakhstan, and internal concerns over the company\u2019s rapidly inflated valuation.    <\/li>\n<li class=\"nnbtc-key-takeaways__list-item\">\n        Genesis Digital\u2019s founders allegedly sold over $550 million worth of shares to Alameda during FTX\u2019s financial collapse.    <\/li>\n<li class=\"nnbtc-key-takeaways__list-item\">\n        The lawsuit could influence how courts handle inflated crypto deals and may set a precedent for future bankruptcy recoveries.    <\/li>\n<\/ul><\/div>\n<p>The post <a href=\"https:\/\/99bitcoins.com\/news\/bitcoin-btc\/ftx-recovery-trust-sues-genesis-digital-to-recover-1-15-billion\/\">FTX Recovery Trust Sues Genesis Digital to Recover $1.15 Billion<\/a> appeared first on <a href=\"https:\/\/99bitcoins.com\/\">99Bitcoins<\/a>.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The FTX Recovery Trust has taken legal action against Genesis Digital Assets and several people linked to the company. They\u2019re asking the court to help recover around $1.15 billion that they believe was transferred under suspicious circumstances. The lawsuit is being handled in the US Bankruptcy Court in Delaware and is tied to the ongoing [&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-49174","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\/49174","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=49174"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/49174\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=49174"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=49174"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=49174"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}