FTX Recovery Trust Pursues Bitcoin Miner Genesis Digital Assets for $1.15 Billion

The FTX Recovery Trust has initiated legal action against Bitcoin mining firm Genesis Digital Assets, seeking damages amounting to $1.15 billion. The lawsuit alleges that Genesis Digital Assets improperly benefited from its relationship with the now-bankrupt cryptocurrency exchange, FTX. The suit claims Genesis Digital Assets received preferential treatment and withdrawals ahead of FTX’s collapse, to the detriment of other creditors. The FTX Recovery Trust aims to reclaim funds it alleges were unlawfully obtained in order to compensate victims of the FTX downfall. This lawsuit adds another layer of complexity to the ongoing legal proceedings surrounding the FTX bankruptcy. The case is expected to be lengthy, potentially raising intricate legal questions regarding financial transactions between FTX and Genesis Digital Assets. The outcome of this lawsuit will be closely watched by creditors, regulators, and other stakeholders in the cryptocurrency industry.