News - FTX lawyers demand $3.9 billion from Genesis

By Luc Vesters

FTX lawyers demand $3.9 billion from Genesis

FTX lawyers are trying to ransom about $3.9 billion from crypto lender Genesis, which is also bankrupt.

As evidenced by a court application of last May 3, the required amount consists of various amounts. This includes $2 billion in loans and collateral allegedly received by Genesis from Alameda Research. The remaining funds would have been withdrawn by Genesis and its subsidiary, GGC International, prior to FTX’s bankruptcy, lawyers said.

Under Chapter 11 of the Bankruptcy Code, transfers within 90 days of a company’s bankruptcy are considered "avoidable." However, attempts to recover funds are not always successful, especially since Genesis also is going through a Chapter 11 bankruptcy proceeding.

At the beginning of the year, new FTX administrators were already able to securing five billion dollars. In March, they provided additional multimillion-dollar funds.

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