Particle.news
Download on the App Store

FTX Recovery Trust Sues Genesis Digital for $1.15 Billion Over Alleged Fraudulent Transfers

The Delaware complaint seeks to unwind what the estate describes as inflated, insider‑enriching share purchases funded with commingled customer deposits.

Overview

  • The adversary complaint was filed on Sept. 22 in U.S. Bankruptcy Court in Delaware, naming Genesis Digital Assets and co-founders Rashit Makhat and Marco Krohn.
  • Between August 2021 and April 2022, Alameda Research invested $1.15 billion across four rounds at what the estate calls outrageously inflated prices while FTX was insolvent.
  • The filing says Makhat received about $470 million and Krohn $80.9 million for personal shares, totaling roughly $551 million paid out by Alameda.
  • The trust alleges most of the money came from FTX.com customer deposits routed through Alameda, citing red flags such as Kazakhstan power constraints, unaudited financials, and reports of illicit‑finance risks.
  • Genesis Digital declined to comment, and the case now enters discovery as the estate pursues wider clawbacks and readies another creditor distribution scheduled for Sept. 30.