FTX Group is seeking to claw back close to $3.9 billion of cash and crypto from bankrupt digital asset lender Genesis Global Capital LLC and a non-bankrupt affiliate, GGC International Ltd.
(Bloomberg) — FTX Group is seeking to claw back close to $3.9 billion of cash and crypto from bankrupt digital asset lender Genesis Global Capital LLC and a non-bankrupt affiliate, GGC International Ltd.
The funds relate to $1.8 billion of loans and $273 million of collateral given to Genesis Global Capital by Alameda Research Ltd., Sam Bankman-Fried’s defunct crypto trading house, shortly before it collapsed into bankruptcy alongside FTX, according to court papers filed Wednesday.
They also relate to $1.6 billion of assets Genesis Global Capital withdrew from FTX’s trading platform before then bankruptcy, along with $213 million taken out by GGC International, lawyers for FTX allege in the court filings.
FTX is trying to get the funds back using bankruptcy rules designed to ensure some creditors aren’t favored over others. So-called avoidable transfers are those that occur up to 90 days before a company goes bankrupt.
Attempts to claw back funds through bankruptcy are not always successful.
Representatives for FTX and Genesis didn’t immediately respond to requests for comment.
–With assistance from Emily Nicolle.
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