• FTX Group has filed a motion to recover $3.9 billion from Genesis Global Capital LLC and its affiliate, GGC International.
• The money includes $1.8 billion in loans and $273 million in collateral given by Alameda Research, a now-defunct cryptocurrency trading house run by Sam Bankman-Fried.
• FTX claims Genesis had an important role in its fraudulent business model and is seeking to recover funds through Avoidance Claims.

FTX Files Motion To Recover Funds From Genesis

FTX Group has filed a court motion in the District of Delaware seeking to modify the automatic stay and commence adversary proceedings against Genesis Global Capital and its affiliated debtors. The fallen exchange group intends to adjudicate and liquidate their preference and other avoidance and related claims against the Genesis Debtors, including claims pursuant.

$3.9 Billion In Cash At Stake

The funds in question include $1.8 billion in loans and $273 million in collateral given to Genesis by Alameda Research, a now-defunct cryptocurrency trading house run by Sam Bankman-Fried. The loans and collateral were provided shortly before Alameda Research and the exchange filed for bankruptcy.

Accusations Against Genesis

FTX Group has accused Genesis, one of its main feeder funds, of playing a crucial role in its fraudulent business model. According to the court filing, Genesis had outstanding loans of over $8 billion to FTX Debtor Alameda Research in 2021. However, unlike other creditors and customers, Genesis was largely repaid prior to FTX’s bankruptcy filing.

Avoidance Claims Filed By FTX

The fallen exchange is now seeking to recover funds from Genesis through Avoidance Claims which relate to alleged preferential transfers, fraudulent transfers, and other avoidable transactions made within 90 days prior to the exchange’s bankruptcy filing such as loan repayments/collateral pledge & withdrawals from FTX’s website . This move could be viewed as an attempt for FTX Group restarting its operations & generate returns from it .

Conclusion

                                                                                                                                                                                                                 
 FTX intends to use these Avoidance Claims as defense against any claims made by Genesiss during their bankruptcy case & claw back the funds received earlier by them duely .