The collapse of FTX has not finished shaking the crypto ecosystem. The FTX Recovery Trust has initiated legal action against Bitcoins Genesis Digital Assets, claiming $ 1.15 billion. A colossal amount that recalls how the shadow of FTX continues to hover over the industry.
In short
- The FTX Recovery Trust continues Genesis Digital Assets to recover $ 1.15 billion illegally invested by Sam Bankman-Fried.
- The former CEO of FTX would have used customer funds via Alameda Research to buy shares of the minor at “outrageously inflated prices”.
- This legal action is part of the overall recovery strategy for $ 16.5 billion in mobilizable assets.
A new legal battle in the wake of FTX
The FTX Recovery Trust, responsible for recovering the funds for the creditors of Exchange in bankruptcy, filed a complaint against Genesis Digital Assets (GDA) on Monday. The main reproach is unequivocal: Sam Bankman-Fried would have invested $ 1.15 billion in the bitcoin minor via Alameda Research, diverting money from FTX customers.
According to the judicial document, Sam Bankman-Fried concluded these investments at “outrageously inflated prices”, which allowed him to draw a personal advantage. Already sentenced to 25 years in prison, he would have made GDA one of his most hazardous bets.
At the time of the facts, Genesis Digital Assets concentrated his activities in Kazakhstan. Today, the company has expanded its imprint with mining farms in the United States and Europe, while establishing its head office in Dubai.
On the defense side, silence dominates. GDA refused to react to the accusations, while former FTX legal advisers reject all responsibility and ensure that they have never been aware of organized fraud.
An offensive trust, between reimbursements and legal battle
This new legal offensive is part of a wider reconquest strategy. Since the beginning of 2025, the FTX Recovery Trust has multiplied initiatives to restore the confidence of creditors.
After two waves of reimbursements already made, a third bran of $ 1.6 billion must be paid by the end of September. At this stage, almost 7.8 billion was redistributed, but the initial losses still exceeded $ 16 billion.
These efforts reflect the will of John J. Ray III, the experienced lawyer named at the head of the trust, to definitively turn the FTX page. However, each new legal proceedings revive the wounds left by bankruptcy and feeds distrust of centralized platforms.
For many observers, the FTX scandal now embodies the drifts of an industry that has been prospered for too long without a real safeguard.
In short, the complaint aimed at Genesis Digital Assets illustrates this determination to recover each dollar engulfed in turmoil. But if it were to succeed, it would especially recall how the opaque management of Sam Bankman-Fried has weakened the entire sector.
Between progressive reimbursements and endless disputes, FTX's toxic heritage continues to weigh heavily on the credibility of the crypto ecosystem.
Maximize your Cointribne experience with our 'Read to Earn' program! For each article you read, earn points and access exclusive rewards. Sign up now and start accumulating advantages.
