"Between August 2021 and April 2022, Bankman-Fried caused Alameda to Purchase several tranches of shares in GDA, a Bitcoin mining firm, at outrageously inflated prices," the filing read. "While FTX Group funds were used to purchase the shares, only Alameda-and, in turn, Bankman-Fried, Alameda's 90% owner-was to receive any benefit, to the great detriment of customers and other creditors of FTX.com"
"According to the filing, most of the funds came from customer deposits on FTX.com that were funneled into Alameda Research and then redirected into Genesis Digital. The trust claims the mining company's co-founders, Rashit Makhat and Marco Krohn, personally benefited, selling more than $550 million worth of their own shares to Alameda in the process. Under U.S. bankruptcy law, the trust is empowered to pursue "avoidance actions" - lawsuits designed to claw back funds that were improperly transferred before a company filed for bankruptcy."
FTX Bankruptcy Trust filed a $1.15 billion lawsuit against Genesis Digital Assets alleging more than $1 billion in fraudulent transfers from Alameda Research between 2021 and 2022. The complaint asserts Alameda purchased Genesis shares at outrageously inflated prices using FTX Group funds while FTX was insolvent, benefitting Alameda and Sam Bankman-Fried and harming customers and creditors. Most of the transferred funds allegedly originated from FTX.com customer deposits funneled through Alameda to Genesis. The trust alleges co-founders Rashit Makhat and Marco Krohn personally benefited, selling over $550 million of shares to Alameda. The suit seeks recovery through bankruptcy avoidance actions.
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