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Bankrupt crypto exchange FTX wants to recover nearly $4 billion in funds from the also bankrupt Genesis Global Capital, the company said in a court filing on Wednesday.
Genesis “substantially repaid” the nearly $8 billion in loans made to Alameda Research, an FTX-affiliated entity in the weeks before FTX went bankrupt in November, according to the motion. Genesis is a subsidiary of Digital Currency Group, the parent company of CoinDesk. Genesis itself filed for bankruptcy in January.
According to Wednesday’s filing, Alameda repaid $1.8 billion in loans to Genesis and pledged $273 million to Genesis in the 90 days before the various FTX companies filed for bankruptcy. Genesis also withdrew an additional $1.6 billion from FTX, while Genesis Global Capital International withdrew an additional $213 million over the same period.
“The Avoidance Actions will seek to recover funds received by Genesis and nondebtor affiliates so that those funds may be shared with all other creditors of FTX Debtors in FTX’s Chapter 11 matters. These creditors include several million customers who owe more than $11 billion at the time of FTX’s Chapter 11 case filings,” the filing states.
There will be a hearing on May 25 to discuss the motion.
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