FTX Wants to Take Back $4B from Genesis
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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According to court documents filed on Wednesday, the exchange wants to get back liquidity which was withdrawn from FTX prior to the collapse (over $1.6 billion) and collateral sent by Alameda Research ($2 billion).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.

Genesis Execs Had Private Access to FTX Tokens: FT

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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