- FTX‘s new management is suing Genesis Digital Assets for $1.15 billion.
- The lawsuit alleges ex-CEO Sam Bankman-Fried used customer funds to invest in the Bitcoin mining company.
- FTX filed the lawsuit to recover money for customers after the company collapsed in November 2022.
- The claims state that Bankman-Fried purchased shares at inflated prices using misappropriated funds through Alameda Research.
- Bankman-Fried is serving a 25-year prison sentence after being convicted on seven criminal charges.
FTX has filed a lawsuit against Bitcoin miner Genesis Digital Assets and its co-founders, seeking $1.15 billion. The case, filed by FTX’s new management, aims to recover money the company claims was misused during Sam Bankman-Fried‘s time as CEO.
According to the lawsuit, Bankman-Fried used customer funds “commingled and misappropriated” from the exchange to buy shares of Genesis Digital Assets at “outrageously inflated prices.” FTX collapsed in November 2022, leading to customer losses. The case is now managed by a team led by John J. Ray III to recoup these losses.
The suit claims “Genesis Digital Assets stands as one of Bankman-Fried’s most reckless investments with commingled and misappropriated funds.” It adds that these investments were made through FTX’s affiliate, Alameda Research, using money from FTX customers. The lawsuit also says Bankman-Fried personally benefited, since shares were held by Alameda, a company he owned 90% of. It cites, “Bankman-Fried’s purchases were archetypical fraudulent transfers.”
Genesis Digital Assets did not comment on the ongoing case when contacted. The company was based in Kazakhstan at the time of the investments but now has data centers in the United States and Europe, with headquarters in Dubai.
Bankman-Fried was arrested, charged, and later found guilty for his role in FTX’s collapse. He was sentenced to 25 years in prison after being convicted in November 2023 on seven charges involving the misuse of customer and investor funds. According to FTX’s new management, customer deposits were mainly used to support risky trades at Alameda Research.
John J. Ray III, handling FTX’s restructuring, compared the company’s failure to the Enron scandal, noting the scale of the bankruptcy.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
Previous Articles:
- Intel Hits $30 After Nvidia Buys 4% Stake, Shares Dip on Resistance
- US Offers Aid as Milei’s Argentina Faces Debt, Inflation Crisis
- Judge Rejects Justin Sun’s Bid to Block Bloomberg Crypto Report
- Europol Busts €100M Crypto Scam, Arrests Five in Major Crackdown
- Shiba Inu Shows Promise: Small SHIB Savings May Yield Big Gains
