Officials allege that FTX subsidiary Alameda Research largely repaid the $8 billion it borrowed from Genesis Trading, just weeks before the company first filed for Chapter 11 bankruptcy protection.
The bankrupt officials of FTX and Alameda Research will stop at nothing to recover the money lost by the previous management led by Sam Bankman-Fried (SBF). The cryptocurrency exchange under John J. Ray III, CEO and Head of Restructuring, has sued several entities including urging politicians from both islands to recover cash donated by the SBF. Moreover, Ray pointed out that the exchange may never recover all the lost funds but remain focused to get as much as possible.
FTX on Genesis Global
According to court filings on Wednesday, current officials at FTX and Alameda Research are seeking to recover nearly $4 billion that was paid to DCG-backed Genesis Trading. Officials allege that FTX subsidiary Alameda Research largely repaid the $8 billion it borrowed from Genesis Trading, just weeks before the company first filed for Chapter 11 bankruptcy protection.
The avoidance actions will seek to recover funds received by Genesis and its non-debtor affiliates so that those funds may be shared with all other creditors of FTX debtors in FTX Chapter 11 cases. These creditors include several million customers who owe more than $11 billion as of the time of the filing. FTX Chapter 11 Issues,” He said.
Alameda Research reportedly repaid $1.8 billion in loans to Genesis Trading and pledged $273 million in the subsequent three months. In addition, filings indicated that Genesis Trading withdrew another $1.6 billion from FTX, while Genesis Global Capital International withdrew another $213 million in the same period.
As a result, a hearing was set for May 25 to discuss the matter in depth.
close reflection
Existing FTX administrators have reportedly recovered about $5 billion in liquid assets including Solana, Bitcoin and ETH. At some point, the current FTX administrators are looking into reopening the exchange to pool more resources for debtors. In a recent update to FTX debtors, Ray noted that the former officials have massively misled investors while continuing to squander their assets.
“We are continuing our efforts to review the events that led to FTX’s downfall and to identify and recover as much value as possible to creditors,” Ray said. male.
Recently, the incumbents of FTX noted that they had entered into an agreement with M7 Holdings, LLC, a subsidiary of Miami International Holdings, Inc. , to sell LedgerX LLC, the futures and options exchange and clearinghouse unit of FTX Corporation. Reportedly, FTX debtors were able to recover nearly $50 million from the LedgerX LLC transaction.
Meanwhile, international FTX entities including the Japanese subsidiary made huge progress in paying off investors.
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