The now-bankrupt cryptocurrency exchange FTX wants to recoup $3.9 billion from its collapsed lending partner Genesis.
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According to court documents filed on Wednesday, the exchange wants to get back liquidity which was withdrawn from FTX prior to the collapse (over $1.6 billion) and collateral sent by Alameda Research ($2 billion).
FTX's lawyers noted in the filing Genesis was one of the exchange's main business partners as at one point in 2021, the firm "had over $8 billion of outstanding loans to FTX Debtor Alameda Research."
In January 2023, Genesis filed for Chapter 11 bankruptcy. The lender has over 100,000 creditors, owing them $3.4 billion. Genesis proposed a roadmap for exiting the crisis, which includes a Chapter 11 plan that provides a framework for the global resolution of all claims through the creation of a fiat money fund that will distribute assets among creditors.
In late April 2023, Digital Currency Group, the parent company of Genesis, said some of the firm's creditors declined to stick to the previous restructuring agreement for the lender.
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