FTX, a cryptocurrency exchange that has gone bankrupt, is attempting to recover its losses by taking legal action. According to court documents, FTX is requesting $1.8 billion in loans and a $273 million collateral pledge supposedly given to Genesis Global Capital by Alameda Research, FTX’s sister trading firm.
FTX is seeking to regain $1.6 billion in withdrawals that it believes were made by Genesis, as well as $213 million that was allegedly withdrawn by Genesis’ BVI-based entity, GGC International, from the exchange before it filed for Chapter 11 bankruptcy.
In response to Genesis Global Capital’s bankruptcy filing, FTX exchanges have filed court documents claiming to have repaid nearly $8 billion owed to Alameda. FTX has differentiated itself from other creditors and customers who have not received their repayment.
FTX has accused the cryptocurrency lender platform of being a significant enabler of its fraudulent business practices. FTX alleges that the lender platform played an instrumental role in facilitating its fraudulent activities.
To ensure all creditors receive equal treatment, FTX’s attorneys are pursuing legal action to recover funds transferred within 90 days of the bankruptcy filing, referred to as a “clawback.” The attorneys aim to recover “avoidable transfers” deemed fraudulent per bankruptcy regulations.
By pursuing this action, the attorneys seek to prevent preferential treatment of certain creditors over others and promote fairness in the court’s ruling. Recovering these funds is essential in upholding the principles of justice in bankruptcy proceedings.