FTX seeks to claw back $3.9B from Genesis; undersold SUI contracts by 1000x

FTX’s bankruptcy lawsuit proceeded arsenic the institution moved to retrieve $3.9 cardinal from Genesis. Meanwhile, an earlier FTX merchantability became applicable with the motorboat of SUI token.

FTX aims to retrieve $3.9B successful Genesis funds

In a May 3 filing, FTX said it intends to statesman adversary proceedings against Genesis Global Capital and different associated companies.

That filing called Genesis a “main feeder fund” for FTX and Alameda and said that Genesis received avoidable transfers from FTX’s debtors totaling $3.8 billion.

Specifically, FTX debtors repaid $1.8 cardinal successful loans and provided $273 cardinal of collateral to Genesis. FTX debtors besides allowed Genesis Global Capital and GGC International to retreat $1.6 cardinal and $213 cardinal from FTX.com, respectively.

As such, FTX says it “will question to claw backmost funds” that Genesis received done avoidance actions. It aims to instrumentality funds to millions of creditors owed implicit $11 billion.

FTX said it requests lone constricted relief, allowing it to record and person adjudication for its claim. FTX said immoderate attempts to enforce the petition would hap successful Genesis’ ain bankruptcy lawsuit — not successful FTX’s bankruptcy case.

FTX apt undervalued SUI contracts

Earlier proceedings involving FTX’s assets besides attracted attraction arsenic Mysten Network’s SUI token began to commercialized connected the crypto marketplace connected May 3.

In 2022, FTX and its related companies purchased token contracts that would person allowed them to get 888 cardinal SUI. The SUI token was worthy $1.38 astatine the clip of writing, meaning that the FTX radical could person redeemed those contracts for $1.2 billion.

However, FTX moved to merchantability those token contracts successful March and completed the merchantability connected April 14. When it did so, it sold the contracts for $1 cardinal — astir 1000 times little than could person redeemed the tokens for today.

FTX besides sold $95 cardinal of Mysten Labs shares alongside its SUI contracts.

The station FTX seeks to claw backmost $3.9B from Genesis; undersold SUI contracts by 1000x appeared archetypal connected CryptoSlate.