How FTX Wants $1.15B Back from Genesis-Drama, Dollars & Digital Dust-Up! 💥💸

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Stop the presses! The FTX Recovery Trust just threw down the gauntlet in Delaware court, chasing a whopping $1.15 billion from Genesis Digital Assets and pals, claiming Alameda’s “investments” were less “business savvy” and more “fool me once, shame on you, fool me twice… we’re suing!” 🤡

FTX Estate Sings ‘Take Me to Your Lawsuit’ 🎭

On September 22, 2025 (mark your calendars, folks), the complaint stormed into court accusing Genesis Digital Assets, co-founders Rashit Makhat and Marco Krohn, and a little ol’ guy named Sam Bankman-Fried of cooking up a deal from August 2021 to April 2022 that sounds like a bad casino heist-Alameda buying GDA shares at prices so inflated they could float a dirigible, all paid for with FTX.com customer money, because hey, why not dip into the cookie jar? 🍪💰

The Recovery Trust isn’t blind to the woes of Kazakhstan’s power curbs and new miner taxes-apparently GDA was valued like it had swallowed a magic bean instead of facing reality. Still, Alameda kept dropping cash like it was Monopoly money. Five key transactions stand out: $100 million and some spare change on Oct 5, 2021; a cool $470 million and $80 million on Feb 1, 2022, to the lucky founders; and two $250 million checks in February and April 2022. That’s not a payment plan, that’s a money marathon. 🏃‍♂️💨

According to the lawyers, more than half the loot zipped straight to the founders in a deal so rushed it made a soap opera look slow. Due diligence? Who’s got time! Cap tables shifted more than a drunk uncle at a wedding. Alameda ended up with a receipt for less than what they paid-because GDA missed every single number on revenue, EBITDA, audits, and some U.S. expansion dreams that evaporated faster than your hopes after canceling HBO. 📉😬

By mid-2022, new funding needs popped up like bad sitcom plot twists. The promised IPO? Never say never, but also never gonna happen. Plaintiff insists the real treasure was in U.S. subsidiaries, just not anywhere near the “premium” price Alameda shelled out.

Now, the legal eagles are singing Bankruptcy Code arias, claiming these transfers wore “badges of fraud” louder than a neon sign in Vegas-think hush-hush origins, speed runs over homework, super insider benefits to Bankman-Fried (90% Alameda, big boss energy), and insolvency right around the corner. 🎩✨

The tale twists with admissions from FTX insiders and throws in North Dimension accounts, plus secret sauce FTX code moves funneling customer deposits into Alameda’s never-ending credit card-the kind of credit limit that makes a gold-plated pinky ring look modest. Using shiny liquid funds to snag illiquid mining equity? Genius or madness? The trust thinks the latter, since cash to pay back customers and creditors ran dry faster than your last weekend plans. 🏦🚿

The defendants are playing hard to get with the court-no answers yet! GDA, based in Houston with a sprinkle of Kazakhstan action, says they’re running over 20 bitcoin mining centers; FTX estate counters: “Yeah, but most of that bling’s actually U.S. stuff in a Delaware shell game.” Let the courtroom comedy continue! 🎬⚖️

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2025-09-23 22:27