Crypto Chaos: Billion-Dollar Lawsuit Hits Genesis! 💸

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So, in a plot twist that makes daytime soap operas look like Sunday school, an FTX trust has decided it’s time to play legal whack-a-mole with Genesis Digital Assets. They’re claiming a cool $1.15 billion was “borrowed” (wink, wink) by Sam Bankman-Fried, the crypto wunderkind who turned existential dread into a business model.

Filed in the US Bankruptcy Court for the District of Delaware-because apparently drama needs a venue-the lawsuit drags in Genesis Digital, its affiliates, and co-founders Rashit Makhat and Marco Krohn. The trust insists these folks have been playing musical chairs with FTX’s money, and now it’s time to return the favors… and the billions.

FTX Trust vs. Fraudulent Transfers

The allegations are spicy: customer deposits from FTX.com, the platform that promised your money was “safe,” allegedly got funneled into Genesis like it was a fancy new slot machine. According to the FTX Recovery Trust, Bankman-Fried’s deals were textbook “fraudulent transfers,” which in layman’s terms means, “Hey, we took your money, but it’s okay, we put it somewhere else first.” 😬

Back in 2021, while Sam was busy orchestrating these masterful financial pirouettes, he apparently stood to gain big with zero risk. Why? Because those Genesis shares ended up cozying up in Alameda Research, where Sam owned 90%. Math checks out. Logic? Debatable.

The complaint cites U.S. bankruptcy law like a legal Michelin star, claiming these transactions should be tossed out as avoidable fraudulent transfers. Basically, it’s a fancy way of saying, “Give it back, buddy.”

The Third Distribution Countdown

But wait-there’s more! The trust isn’t just after the $1.15 billion; they want anything else that might pop up during discovery, plus attorneys’ fees, interest, and whatever else lawyers deem necessary to look busy. 💼

All this legal hoopla coincides with the FTX Recovery Trust gearing up for its third distribution to creditors, with payments slated to start September 30, 2025. Fingers crossed they don’t accidentally send the money to a cat.

Meanwhile, FTX’s token, FTT, is doing its best impression of a rollercoaster: $0.82 at writing, after briefly flirting with $1 last week. Hold on tight, folks, the crypto carnival is in town! 🎢

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2025-09-23 21:00