FTX lawyers have filed a lawsuit against bankrupt crypto lending platform Genesis demanding the return of $4 billion.
FTX moves to claw back $3.9 billion from Genesis.
1. $2.1 billion loan repayments/collateral pledge
2. $1.8 billion FTX exchange withdrawals pic.twitter.com/1SsW8yoPck— FTX 2.0 shareholder (in spe) (@AFTXcreditor) May 3, 2023
The documents say that 90 days before the collapse, Alameda Research provided the company with a $1.8 billion loan and $273 million in collateral.
FTX is also trying to recover $1.6 billion and $213 million that Genesis and its subsidiary took off the exchange shortly before its collapse.
On November 16, 2022, the Genesis Global Capital crypto lending platform froze the withdrawal of funds and the issuance of new loans. The firm cited “increased demand” from customers following the collapse of FTX.
In January 2023, Genesis Global Holdco and its subsidiaries Genesis Asia Pacific and Genesis Global Capital filed for bankruptcy. According to media reports, their liabilities exceed $3 billion.
Parallel to the loan litigation, a group of three media giants – The New York Times, The Financial Times and Bloomberg – applied to the bankruptcy court demanding the release of the names of 9 million FTX customers.
“There is no legal basis for providing users [биржи] opportunity to anonymously participate in bankruptcy proceedings,” the statement said.
This is not the first attempt by the media to put forward such demands. However, last time FTX security expert Jeremy Sheridan said that platform customers could become victims of fraud.
He recalled the situation with the collapsed custodial service Celsius, when, after the publication of personal data, users began to receive suspicious calls and offers. In particular, the attackers pretended to be lawyers and brokers of the company.
In response, media companies said that FTX and Celsius customers are actually less susceptible to scammers, as they are familiar with most of the fraud taking place in the crypto sector.
“Despite possible attempts, there is no official evidence that any of the individuals named in the Celsius lawsuit were victims of ransomware — neither their personal data nor their digital assets were affected,” the media conglomerate claims.
Recall that in May, FTX consultants and lawyers billed for their services for $103 million for the first quarter.
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