FTX seeks to claw again $4B from Genesis in a battle of the bankrupt

Cryptocurrency trade FTX is searching for to recuperate round $4 billion from equally bankrupt crypto lender Genesis and a still-solvent British Virgin Islands-based entity — a part of efforts to recuperate worth for collectors.

In a Could 3 court docket submitting in a New York Chapter Courtroom, legal professionals for FTX sought $1.8 billion in loans and a $273 million collateral pledge allegedly given to Genesis from FTX’s sister buying and selling agency Alameda Analysis.

FTX can be searching for to claw again $1.6 billion in withdrawals allegedly made by Genesis and an additional $213 million presupposed to be withdrawn by its BV-based entity GGC Worldwide from the trade earlier than it collapsed into Chapter 11 chapter on Nov. 11.

The submitting claims Genesis was “largely repaid” its almost $8 billion in loans made to Alameda, “in contrast to different FTX collectors and prospects.”

FTX alleged the bankrupt lender was “one of many principal feeder funds for FTX and instrumental to its fraudulent enterprise mannequin.”

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The trade’s legal professionals are searching for the clawback beneath chapter legal guidelines that permit it to recoup “avoidable transfers” that happen in a 90-day interval earlier than an organization declares chapter.

Earlier clawbacks by FTX have targeted on $3.2 billion in funds made to its former executives, a $460 million funding made by Alameda into enterprise capital agency Modulo Capital and round $93 million in political donations made by founder Sam Bankman-Fried and different former prime brass.

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