FTX demands Digital Assets Genesis at the rate of investment made by Sam Bankman-Fried
By Angel di Matteo @Shadowargel
The trust associated with the bankruptcy of FTX He presented charges against ASSET DIGITAL GENESISKazakhstan-based cryptominery company, in which a quite considerable amount of capital was invested during the management of Bankman-Fried derived from customer funds.
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- The demand alleges that Sam Bankman-Fried used customer funds to invest in ASSET DIGITAL GENESIS.
- The trust seeks to recover USD $ 1,150 million, including USD $ 550 million delivered to co -founders.
- The case highlights the overvaluation of the mining company in the midst of energy and political crisis in Kazakhstan.
Ftx, The International Trade Platform for Banking Cryptocurrencies, filed a lawsuit against the mining company GENESIS DIGITAL ASSETS LIMITED (GDA) before a court in Delaware. Judicial action argues that Sam Bankman-Fried, former executive director of the service, He used mixed and embezzled funds to invest in the company before the collapse of the Exchange.
According to the document presented on Monday, reviewed by The Blockthe trust carried by the bankruptcy process of FTX described the injection of money from Alameda Research “Exchange’s sister firm- in GDA as “One of Bankman-Fried’s most reckless investments with mixed and embezzled funds”. The Minera, based in Kazakhstan, would have been overvalued in excess, even considering political instability and energy problems in that country.
The trust seeks to recover USD $ 1,150 million invested in GDA, of which USD $ 550 million would have been aimed at their co -founders Rashit Makhat and Marco Krohn.
The collapse of FTX and accusations against Bankman-Fried
FTX He collapsed in November 2022 and subsequently declared bankruptcy. The fall represented a decisive moment for the crypto industry, since the exchange was one of the largest in the world, and maintained a strong presence in Washington. Bankman-Fried was accused of using customer money to finance various investments through the fund Mall, What led to his sentence to 25 years in prison for defrauding clients and investors in a USD $ 8,000 million scheme, although he seeks to appeal and reopen the case to seek a minor sentence.
The current case reflects the efforts of the recovery trust for recovering assets and funds distributed before the platform collapse. In this sense, it stands out as investments made without due diligence have complicated the liquidation process.
In demand, the trust argues that GDA did not give Bankman-Fried Audited Financial Statements and that the non-audited versions “They were not related to reality”. Nor did they reflect structural problems such as the failures in the electricity grid in Kazakhstan and the implementation of new taxes that severely affected the miners Bitcoin.
The trust emphasized that, despite the process of properly cooperative diligence, the obvious overvaluation, political agitation and energy stops imposed in winter, Bankman-Fried decided to move forward with the investment. Kazakhstan had prioritized the supply of energy for homes on mining operations, directly affecting companies such as GDA.
Implications for crypto industry and other creditors
The demand could sit for a precedent for other similar legal actions that seek to recover invested funds in companies related to cryptocurrency. Likewise, the case illustrates the risks of making millionaire investments in jurisdictions with regulatory and volatile political environments.
For the creditors of Ftx, This process could mean the partial recovery of lost funds, although litigation could be extended due to the complexity of transactions and the magnitude of the resources involved.
The trust points to the co -founders Makhat and Krohn as responsible for receiving a substantial part of the funds. However, so far the specific terms of their agreements with Bankman-Fried have not been revealed. The absence of reliable audits in GDA reinforces the narrative of lack of internal controls and supervision during the expansion period of FTX and Alameda Research.
Written article with the help of an AI content editor, edited by Angel Di Matteo / Diariobitcoin
Original image of Diariobitcoin, Created with artificial intelligence, for free use, licensed under public domain.
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