A recent court filing in a New York bankruptcy court has revealed that the bankrupt crypto exchange FTX

 

A recent court filing in a New York bankruptcy court has revealed that the bankrupt crypto exchange FTX is trying to recover $3.9B in cash and crypto from the bankrupt crypto lender Genesis and a non-bankrupt affiliate GGC International.  The company's lawyers aim to benefit from certain bankruptcy rules that prevent some creditors from being given preference over others.  The bankruptcy  rules allow a company to recover transfers that occur within 90 days before going bankrupt.  However, attempts to recover funds through bankruptcy could sometimes be unsuccessful.  FTX lawyers mainly want to recover $1.8B in loans and $273M of collateral given to Genesis by FTX's sister company Alameda Research. The funds also include $1.6B withdrawn by Genesis from FTX's trading platform and $213M taken out by GGC International.  The move came nearly one month after FTX attorney Andy Dietderich revealed that the company recovered over $7.3B of crypto assets in cash and liquid. At the time, Dietderich also said the company was assessing the possibility of relaunching the exchange with its stakeholders and would make a final decision on the issue within the current quarter, adding that a possible restart would require a significant amount of capital. FTX, previously the third-largest crypto exchange, filed for Chapter 11 bankruptcy  in November 2022, with all the 130 entities under the roof of FTX Group. The downfall followed the claims that the former CEO Sam Bankman-Fried (SBF) used customer funds in FTX to compensate for losses at Alameda Research.  SBF currently faces trial with 13 charges, including bank fraud, money laundering, and bribery, to which he pleaded not guilty.