{"id":49073,"date":"2023-05-04T08:14:43","date_gmt":"2023-05-04T12:14:43","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=49073"},"modified":"2023-05-04T08:17:36","modified_gmt":"2023-05-04T12:17:36","slug":"ftx-sues-genesis-affiliate-for-3-9-billion","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/ftx-sues-genesis-affiliate-for-3-9-billion\/","title":{"rendered":"FTX sues Genesis, Affiliate, for $3.9 Billion"},"content":{"rendered":"\n<p>FTX claims that Genesis and GGC International owes it $3.9 billion in cash and cryptocurrency for loans and withdrawals made prior to the exchange\u2019s collapse.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large is-resized\"><img fetchpriority=\"high\" decoding=\"async\" src=\"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/05\/FTX_-1024x576.webp\" alt=\"FTX sues Genesis, affiliate for $3.9 billion\" class=\"wp-image-49075\" width=\"670\" height=\"377\" srcset=\"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/05\/FTX_-1024x576.webp 1024w, https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/05\/FTX_-300x169.webp 300w, https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/05\/FTX_-768x432.webp 768w, https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/05\/FTX_-750x422.webp 750w, https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/05\/FTX_-1140x641.webp 1140w, https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/05\/FTX_.webp 1200w\" sizes=\"(max-width: 670px) 100vw, 670px\" \/><\/figure>\n\n\n\n<p>The crypto exchange FTX, which filed for Chapter 11 bankruptcy in November 2021, is attempting to recover $3.9 billion in cash and cryptocurrency from Genesis Global Capital and its non-bankrupt affiliate GGC International.&nbsp;<\/p>\n\n\n\n<p>FTX claims Genesis and GGC International owe it $3.9 billion for the following reasons, according to court filings filed on Wednesday:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Before FTX's bankruptcy, Genesis borrowed $1.8 billion in cash and cryptocurrency from Alameda Research, a crypto trading firm affiliated with FTX. As part of its bankruptcy procedure, Alameda Research transferred its loans to FTX.<\/li>\n\n\n\n<li>Genesis provided Alameda Research with $273 million in security for the debts that FTX also inherited.<\/li>\n\n\n\n<li>Genesis withdrew $1.6 billion in cash and crypto from FTX before FTX's bankruptcy.&nbsp;<\/li>\n\n\n\n<li>Before FTX's bankruptcy, GGC International withdrew $213 million in cash and cryptocurrencies.<\/li>\n<\/ul>\n\n\n\n<p>FTX claims that Genesis and GGC International benefited unfairly from these transactions and wants to reverse or avoid them under bankruptcy law.<\/p>\n\n\n\n<p>At the time of filing, FTX claimed it needed to collect the <a href=\"https:\/\/www.reuters.com\/legal\/ftx-customers-file-class-action-lay-claim-dwindling-assets-2022-12-28\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">funds to pay off its customers<span class=\"wpil-link-icon\" title=\"Link goes to external site.\" style=\"margin: 0 0 0 5px;\"><svg width=\"24\" height=\"24\" style=\"height:16px; width:16px; fill:#000000; stroke:#000000; display:inline-block;\" viewBox=\"0 0 24 24\" version=\"1.1\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" xmlns:svg=\"http:\/\/www.w3.org\/2000\/svg\"><g id=\"wpil-svg-outbound-7-icon-path\" fill=\"none\" clip-path=\"url(#clip0_31_188)\">\r\n                            <path d=\"M9.16724 14.8891L20.1672 3.88908\" stroke-linecap=\"round\"\/>\r\n                            <path d=\"M13.4497 3.53554L20.5208 3.53554L20.5208 10.6066\" stroke-linecap=\"round\" stroke-linejoin=\"round\"\/>\r\n                            <path d=\"M17.5 13.5L17.5 16.26C17.5 17.4179 17.5 17.9968 17.2675 18.4359C17.0799 18.7902 16.7902 19.0799 16.4359 19.2675C15.9968 19.5 15.4179 19.5 14.26 19.5L7.74 19.5C6.58213 19.5 6.0032 19.5 5.56414 19.2675C5.20983 19.0799 4.92007 18.7902 4.73247 18.4359C4.5 17.9968 4.5 17.4179 4.5 16.26L4.5 9.74C4.5 8.58213 4.5 8.0032 4.73247 7.56414C4.92007 7.20983 5.20982 6.92007 5.56414 6.73247C6.0032 6.5 6.58213 6.5 7.74 6.5L11 6.5\" stroke-linecap=\"round\"\/>\r\n                        <\/g>\r\n                        <defs>\r\n                            <clipPath id=\"clip0_31_188\">\r\n                                <rect fill=\"white\" height=\"24\" width=\"24\"\/>\r\n                            <\/clipPath>\r\n                        <\/defs><\/svg><\/span><\/a> and creditors, who are owed over $11 billion.<\/p>\n\n\n\n<p>The court filings also show that Genesis repaid most of the loans it received from <a href=\"https:\/\/coinscreed.com\/staging\/alameda-raise-35-mi-for-stacked-trading-app.html\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Alameda Research<\/a> in 2022 before filing for bankruptcy. <\/p>\n\n\n\n<p>However, FTX argues that these repayments were unnecessary transfers because they were made within 90 days of Genesis's bankruptcy filing.<\/p>\n\n\n\n<p>FTX requests a hearing to discuss its claim against Genesis and GGC International on May 25.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\nhttps:\/\/twitter.com\/AFTXcreditor\/status\/1653883349021106179\n<\/div><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>FTX claims that Genesis and GGC International owes it $3.9 billion in cash and cryptocurrency for loans and withdrawals made prior to the exchange\u2019s collapse. The crypto exchange FTX, which filed for Chapter 11 bankruptcy in November 2021, is attempting to recover $3.9 billion in cash and cryptocurrency from Genesis Global Capital and its non-bankrupt [&hellip;]<\/p>\n","protected":false},"author":44,"featured_media":49075,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[26],"tags":[778,4662,1727],"class_list":["post-49073","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrencies","tag-ftx","tag-genesis","tag-lawsuit"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/05\/FTX_.webp","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/49073","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/44"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=49073"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/49073\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/49075"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=49073"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=49073"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=49073"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}