FTX Trust Sues Genesis Digital for $1.15B Transfers
- FTX Trust launches lawsuit against Genesis for $1.15B.
- Focus on alleged fund misappropriation involving SBF.
- Potential impact on creditor recoveries and BTC markets.
The FTX Recovery Trust has filed a lawsuit against Genesis Digital Assets Ltd. and its co-founders Rashit Makhat and Marco Krohn on September 22, 2025, seeking to recover $1.15 billion in customer funds.
This lawsuit highlights ongoing efforts to address the financial aftermath of FTX’s 2022 collapse and its potential impact on creditor recoveries and market dynamics.
The FTX Recovery Trust has initiated a lawsuit against Genesis Digital Assets Ltd. and its co-founders. This lawsuit seeks $1.15 billion related to FTX customer funds allegedly misappropriated involving Sam Bankman-Fried’s transactions.
FTX’s legal action targets co-founders Rashit Makhat and Marco Krohn. The funds in question involve transactions led by former FTX CEO Sam Bankman-Fried. Both leaders allegedly received $550.9 million from Alameda.
The lawsuit reflects ongoing effects from FTX’s 2022 collapse. It attempts to recover value for creditors, potentially reinjecting significant funds into the bankruptcy estate.
A successful clawback could influence market confidence in asset recovery, affecting creditor token pricing especially related to FTX and BTC exposure.
Past instances like Mt. Gox highlight the complex nature of crypto bankruptcy. These cases often result in partial recoveries after long legal battles.
Insights suggest potential recovery might shift market dynamics, particularly within BTC sectors. Historical trends indicate involved token recoveries often include BTC and exchange-related assets, impacting confidence and pricing.
“We are seeking the recovery of $1.15 billion in customer funds allegedly misappropriated through transactions directed by Sam Bankman-Fried.” – Cointelegraph
