FTX wants to recover nearly $4 billion from Genesis in bankruptcy

The bankrupt FTX and its former CEO Sam Bankman Fried (SBF) are still bombarding the crypto news a few months after it went under. This has to do with the lingering bankruptcy proceedings in which it is intertwined. In November, the crypto exchange officially requested a so-called Chapter 11 filed for bankruptcy, which is also referred to as a reorganization bankruptcy. It is a legal process for financial restructuring overseen by a federal court.

In bankruptcy proceedings, a so-called clawback receivers have the right to look at the financial transactions the debtor made in a 90-day period prior to bankruptcy to determine whether the property might be recoverable. FTX wants to take advantage of this piece of US legislation and is now seeking to recover nearly $4 billion.

FTX wants to recover $3.9 billion

In a application dated May 3 the company said it plans to recover nearly $4 billion in funds from the also-bankrupt Genesis Global Capital. Genesis is a subsidiary of Digital Currency Group which itself filed for bankruptcy in January of this year.

According to Wednesday’s filing, Alameda Research, an FTX-affiliated entity, repaid $1.8 billion in loans to Genesis and also pledged $273 million in the 90 days before the various FTX companies filed for bankruptcy. Genesis also raised an additional $1.6 billion from FTX, while Genesis Global Capital International raised another $213 million during the same period.

FTX’s goal with this chargeback is to raise more money to eventually return to the millions of creditors who owe more than $11 billion.

Update bankruptcy proceedings FTX

Earlier this week, you could read that the bankrupt crypto exchange had announced in a new monthly financial update that it had spent at least $86 million through the end of March. The vast majority of this was spent on legal costs. These costs will increase considerably during the course of the bankruptcy procedure.

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FTX has already recovered quite a bit of money since bankruptcy and is currently said to have a total of about $6.2 billion in assets. asset to have. The company is even considering a relaunch in the second quarter of next year. To what extent this will actually be achieved remains a big question mark for the time being.

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