Billions of FTX losses: Big recovery operation at Genesis

On November 11, 2022, cryptocurrency giant FTX, once valued at $32 billion, announced the initiation of a voluntary “chapter 11” proceeding. Many asked this question at the time: where had the billions of FTX gone. A part, about 10 billion dollars, would have fallen into the hands of Alameda Research. SBF’s crypto exchange would also transferred large sums to Genesis. For FTX creditors, it’s recovery time.

Genesis and FTX’s $4 billion

5 months after his resounding fall from FTX, rumors have swirled about a possible resumption of the activities of the cryptocurrency exchange after recovering $7.3 billion in assets. It has even been said that 2024 will be his year of rebirth.

But the new leaders of FTX quickly denied this information. They argued that these are just misinterpretations.

We will also note that FTX’s fund recovery operations have been going well so far.

According to BeInCryptothe cryptocurrency exchange founded by Sam Bankman-Fried is reportedly on hold the return of its 4 billion dollars held by Genesis Global Capital.

The document filed in court on May 3 states that FTX’s creditors have claimed all the money from this cryptocurrency lender.

The rescission actions will seek to recover funds received by Genesis and non-debtor affiliates so that those funds can be shared with all other creditors of FTX’s debtors in FTX’s Chapter 11 cases. “, can we read in the said document.

When do refunds start?

Alameda Research has already paid part of its due to FTX since the fall of this empire. In the file, it was said that:

  • Alameda has already reversed a $1.8 billion loan to Genesis;
  • this company with which SBF created a secret line of credit of 65 billion dollars also pledged 273 million dollars to Genesis 3 months later;
  • etc

But when it comes to Genesis refunding FTX, many remain skeptical. Because for the moment, the company, declared bankrupt last January, only thinks of healing its wound in the first place.

It should be noted that last April, some Genesis creditors vetoed a customer repayment plan by the Digital Currency Group (DCG).

However, if they stick to their position, the revival of FTX will remain utopian.

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