TLDR
- FTX Trust has filed a lawsuit against Genesis Digital seeking to recover $1.15 billion in lost funds.
- The lawsuit claims that Genesis benefited from fraudulent transactions orchestrated by Sam Bankman-Fried.
- FTX Trust accuses Bankman-Fried of using FTX’s funds for reckless investments in Genesis Digital at inflated prices.
- The Trust argues that Bankman-Fried’s actions were motivated by personal interests rather than FTX’s obligations.
- FTX Trust previously filed a similar lawsuit against Binance in an effort to reclaim $1.76 billion.
FTX Trust has filed a lawsuit against Genesis Digital, seeking to recover $1.15 billion in lost funds. The Trust claims that Genesis benefited from fraudulent transactions conducted by Sam Bankman-Fried. It accuses Bankman-Fried of making reckless investments with FTX’s funds, including an inflated purchase of shares in Genesis Digital Assets.
FTX Trust Sues Genesis Over Reckless Investment
The FTX Trust argues that Bankman-Fried used FTX’s funds to make risky investments in Genesis Digital. According to the lawsuit, Bankman-Fried’s decisions benefited his personal interests over those of the company. The filing specifically points to the purchase of shares in Genesis Digital Assets at inflated prices.
“Bankman-Fried caused Alameda to purchase several tranches of shares in Genesis Digital, at outrageously inflated prices,” the Trust claims. Genesis Digital is accused of being one of Bankman-Fried’s most reckless investments. The Trust argues that the investment was a misuse of FTX’s funds, which were commingled with personal interests.
Bankman-Fried resigned from Genesis Digital’s board one day before FTX declared bankruptcy. The lawsuit highlights the timing of this move and aims to prove the fraudulent nature of the transactions. FTX Trust hopes to use this connection to show that the actions were not in the interest of FTX’s creditors.
Previous Lawsuits and Legal Strategy
This new lawsuit is part of the Trust’s ongoing efforts to recover lost funds. Last month, FTX Trust filed a similar lawsuit against Binance, seeking to claw back $1.76 billion. FTX Trust continues to pursue all available legal avenues to reimburse its creditors.
Genesis Digital has faced legal scrutiny from the government on multiple occasions. However, the Trust’s lawsuit is a civil case, which differs from prior legal battles involving the firm. Whether the court will rule in favor of the Trust remains uncertain.
While Bankman-Fried is currently incarcerated, the Trust’s lawsuit aims to hold entities like Genesis accountable. FTX Trust is determined to take aggressive legal steps in its bid to make creditors whole again. The outcome of the Genesis Digital case remains unclear, but the Trust’s actions demonstrate its commitment to recovery.
The post FTX Trust Sues Genesis Digital for $1.15B: Fraudulent Deals Uncovered appeared first on Blockonomi.
Source: https://blockonomi.com/ftx-trust-sues-genesis-digital-for-1-15b-fraudulent-deals-uncovered/