FTX Recovery Trust Sues Genesis Digital Assets for $1.15 Billion
The FTX Recovery Trust has filed a lawsuit against Bitcoin miner Genesis Digital Assets (GDA) and its co-founders, seeking $1.15 billion. The Trust alleges that former FTX CEO Sam Bankman-Fried (SBF) misused FTX customer funds to invest in GDA.
The lawsuit claims Bankman-Fried purchased GDA shares through Alameda Research, using "commingled and misappropriated funds," at "outrageously inflated prices." The Trust characterizes these as "archetypical fraudulent transfers."
This action is part of ongoing efforts to recover assets for victims of the FTX collapse, a process compared in scale to the Enron bankruptcy by restructuring expert John J. Ray III. SBF is currently serving a 25-year prison sentence.