{"id":99101,"date":"2025-09-23T18:42:31","date_gmt":"2025-09-23T18:42:31","guid":{"rendered":"https:\/\/mycryptomania.com\/?p=99101"},"modified":"2025-09-23T18:42:31","modified_gmt":"2025-09-23T18:42:31","slug":"ftx-trust-files-1-15-billion-lawsuit-against-bitcoin-miner-genesis-digital","status":"publish","type":"post","link":"https:\/\/mycryptomania.com\/?p=99101","title":{"rendered":"FTX Trust Files $1.15 Billion Lawsuit Against Bitcoin Miner Genesis Digital"},"content":{"rendered":"

Bitcoin Magazine<\/a><\/p>\n

FTX Trust Files $1.15 Billion Lawsuit Against Bitcoin Miner Genesis Digital<\/a><\/p>\n

<\/div>\n

The FTX Bankruptcy Trust has filed a $1.15 billion lawsuit against Bitcoin mining firm Genesis Digital Assets, marking one of the largest clawback actions yet in the ongoing efforts to recover assets lost in the collapse<\/a> of the FTX exchange.<\/p>\n

The complaint alleges that Genesis Digital and its co-founders received more than $1 billion in fraudulent transfers from Sam Bankman-Fried\u2019s<\/a> Alameda Research between 2021 and 2022.\u00a0<\/p>\n

\u2018Great detriment\u2019 to FTX customers\u00a0<\/strong><\/h2>\n

The investments, the trust argues, were made at \u201coutrageously inflated prices\u201d and provided little to no value to FTX\u2019s business, which was already insolvent at the time.<\/p>\n

\u201cBetween\u00a0 August\u00a0 2021\u00a0 and\u00a0 April\u00a0 2022,\u00a0 Bankman-Fried caused\u00a0 Alameda\u00a0 to Purchase several tranches of shares in GDA, a Bitcoin mining firm,\u00a0 at outrageously inflated prices,\u201d the filing read<\/a>. \u201cWhile FTX Group funds were used to purchase the shares, only Alameda\u2014and, in turn, Bankman-Fried, Alameda\u2019s 90% owner\u2014was to receive any benefit, to the great detriment of customers and other creditors of FTX.com\u201d<\/p>\n

Under U.S. bankruptcy law, the trust is empowered to pursue \u201cavoidance actions\u201d \u2014 lawsuits designed to claw back funds that were improperly transferred before a company filed for bankruptcy.\u00a0<\/p>\n

The size of this suit underscores the scale of FTX\u2019s asset recovery campaign, which has become one of the largest and most complex in U.S. bankruptcy history following the exchange\u2019s 2022 collapse<\/a>.<\/p>\n

According to the filing, most of the funds came from customer deposits on FTX.com that were funneled into Alameda Research and then redirected into Genesis Digital.\u00a0<\/p>\n

The trust claims the mining company\u2019s co-founders, Rashit Makhat and Marco Krohn, personally benefited, selling more than $550 million worth of their own shares to Alameda in the process.<\/p>\n

The lawsuit describes Genesis Digital as a politically connected miner in Kazakhstan that took advantage of cheap energy and favorable treatment under the country\u2019s former president, Nursultan Nazarbayev. But by late 2021, Kazakhstan\u2019s power grid was under strain from an influx of miners, and new taxes, blackouts, and social unrest destabilized the industry.\u00a0<\/p>\n

The complaint alleges that despite these clear risks \u2014 as well as unaudited financials, money laundering concerns, and a lack of interest from other investors \u2014 Bankman-Fried pressed ahead with outsized investments, according<\/a> to Bloomberg reporting.\u00a0<\/p>\n

\u201cGenesis Digital stands as one of Bankman-Fried\u2019s most reckless investments with commingled and misappropriated funds,\u201d the trust said in its filing.<\/p>\n

The case comes as Bankman-Fried serves a 25-year prison sentence after being convicted on seven criminal counts, including fraud and conspiracy, tied to FTX\u2019s downfall.\u00a0<\/p>\n

This post FTX Trust Files $1.15 Billion Lawsuit Against Bitcoin Miner Genesis Digital<\/a> first appeared on Bitcoin Magazine<\/a> and is written by Micah Zimmerman<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"

Bitcoin Magazine FTX Trust Files $1.15 Billion Lawsuit Against Bitcoin Miner Genesis Digital The FTX Bankruptcy Trust has filed a $1.15 billion lawsuit against Bitcoin mining firm Genesis Digital Assets, marking one of the largest clawback actions yet in the ongoing efforts to recover assets lost in the collapse of the FTX exchange. The complaint […]<\/p>\n","protected":false},"author":0,"featured_media":99102,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-99101","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/99101"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=99101"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/99101\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/99102"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=99101"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=99101"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=99101"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}