Gemini

Billion

<div class="textg" style="text-align: justify; font-weight: lighter; line-height: 1.3em; font-size: 15px; border-radius: 3px; color: #80909a; padding: 10px; background-color: #F4F6F9; margin-bottom: 15px;">
 Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our&nbsp;<a href="https://tokenist.com/terms-of-service/" style="text-decoration:underline;color:#3c7b7b" target="_blank" rel="noreferrer noopener" class="deco-link">website policy</a>&nbsp;prior to making financial decisions.
</div> 
<p class="has-drop-cap">According to a <a href="https://www.bloomberg.com/news/articles/2023-05-03/ftx-seeks-to-claw-back-3-9-billion-in-cash-crypto-from-genesis?leadSource=uverify%20wall" target="_blank" aria-label=" (opens in a new tab)" rel="noreferrer noopener nofollow" class="deco-link">report</a> from Wednesday, May 4th, FTX is attempting to recover around $3.9 billion from Geneses. The assets are allegedly both in cash and in digital assets and the collapsed cryptocurrency exchange is seeking to get them both from Genesis Global Capital and the non-bankrupt GGC International.</p> 
<h3 id="ftx-is-trying-to-get-3-9-billion-back-from-genesis-global-and-ggc">FTX Is Trying to Get $3.9 Billion Back From Genesis Global and GGC</h3> 
<p>FTX is reportedly attempting to recover $3.9 billion from Genesis Global Capital and GGC International. The funds are allegedly both in cryptocurrency and cash and relate to loans and collateral collectively worth just over $2 billion given by Alameda to Genesis Global shortly before the former filed for bankruptcy.</p> 
<p>They also relate to $213 million withdrawn by GCI International and $1.6 billion withdrawn by Genesis Global Capital. This isn’t the first time FTX is targeting a subsidiary of the Digital Currency Group for assets alleged to belong to Alameda Research. Earlier this year, the company <a href="https://tokenist.com/alameda-sues-grayscale-dcg-and-barry-silbert-aiming-to-retrieve-9b/" rel="dofollow" class="deco-link">sued Grayscale</a> for more than $9 billion.</p> 
<p>Additionally, Genesis Global Capital, the company’s lending arm, itself <a href="https://tokenist.com/genesis-files-for-bankruptcy-with-more-than-3-4b-owed-to-creditors/" rel="dofollow" class="deco-link">filed for bankruptcy</a> in January. The filing was, in large part, caused by the contagion stemming from the collapse of FTX, and came after a month-long public feud between the DCG and the Winklevoss twins which saw the latter’s <a href="https://tokenist.com/dcgs-silbert-opens-up-on-genesis-and-3ac-gemini-terminates-earn-program/" class="deco-link">Gemini shut down its earn program</a>.</p> 
<div class="cta-referral"> 
 <img src="https://tokenist.com/wp-content/themes/thetokenist/assets/img/del/cta-referral-1.png" alt="" class="cta-referral__img" loading="lazy" decoding="async"> 
 <div class="cta-referral__text"> 
  <p>Join our&nbsp;<a href="https://t.me/thetokenist" target="_blank" rel="noreferrer noopener nofollow">Telegram group</a>&nbsp;and never miss a breaking digital asset story.</p> 
 </div> 
</div> 
<h3 id="ftx-s-herculean-effort-to-recover-funds">FTX’s “Herculean” Effort to Recover Funds</h3> 
<p>FTX’s current CEO, John J. Ray III, signaled that recovering the bankrupt company’s assets will be an arduous process. Over the course of several months, he highlighted <a href="https://www.nbcnews.com/tech/crypto/new-ftx-ceo-details-complete-failure-corporate-controls-crypto-platfor-rcna57687" target="_blank" aria-label=" (opens in a new tab)" rel="noreferrer noopener nofollow" class="deco-link">the lack of corporate controls</a> within the firm, as well as the former management’s poor record-keeping practices as key reasons for the difficulty.</p> 
<p>In early December 2022, the firm even <a href="https://tokenist.com/ftx-hires-forensic-investigators-to-locate-missing-money/" rel="dofollow" class="deco-link">hired forensic investigators</a> to try and locate the missing funds and by the beginning of the current year, the efforts appeared to have started giving results. An update published in January stated that the company has managed to recover billions of assets but <a href="https://www.prnewswire.com/news-releases/ftx-debtors-provide-additional-information-to-customers-and-other-stakeholders-301723770.html" target="_blank" aria-label=" (opens in a new tab)" rel="noreferrer noopener nofollow" class="deco-link">described the task as “Herculean”</a> and stated the work is far from over.</p> 
<p>Since the start of the year, Ray’s team has also provided several additional reports highlighting the dire state FTX was in under the SBF-run management. A recent report even disclosed some internal communications in which Bankman-Fried admitted that his firm would <a href="https://nypost.com/2023/04/10/sam-bankman-fried-joked-about-losing-50m-in-assets-report/" target="_blank" aria-label=" (opens in a new tab)" rel="noreferrer noopener nofollow" class="deco-link">regularly misplace millions of dollars</a> and simply described the events saying “such is life.”</p> 
<div class="cta-sub js__cta-sub"> 
 <div class="cta-sub__start" data-step="1"> 
  <div class="cta-sub__title">
   <strong>Finance is changing.</strong>
  </div> 
  <div class="cta-sub__subtitle">
   Learn how, with Five Minute Finance.
  </div> 
  <div class="cta-sub__excerpt">
   A weekly newsletter that covers the big trends in FinTech and Decentralized Finance.
  </div> <button type="button" class="btn">Try it out (for free)</button> 
 </div> 
 <div class="cta-sub__form" data-step="2" style="display: none;"> 
  <script type="text/javascript" src="https://app.getresponse.com/view_webform_v2.js?u=QcLhh&amp;webforms_id=zw3Wv"></script> 
 </div> 
 <div class="cta-sub__result" data-step="3" style="display: none;"> 
  <div class="cta-sub__title">
   Awesome
  </div> 
  <div class="cta-sub__caption">
   You’ve subscribed.
  </div> 
  <div class="cta-sub__greeting">
   You’re well on your way to being in the know.
  </div> 
 </div> 
</div> 
<p><strong><em>Do you think FTX will manage to recover the $3.9 billion from Genesis? Let us know in the comments below.</em></strong></p> 
<p>The post <a rel="nofollow" href="https://tokenist.com/ftx-is-seeking-to-reclaim-3-9b-in-fiat-and-crypto-from-genesis/">FTX Is Seeking to Reclaim $3.9B In Fiat and Crypto From Genesis</a> appeared first on <a rel="nofollow" href="https://tokenist.com">Tokenist</a>.</p>

FTX Is Seeking to Reclaim $3.9B In Fiat and Crypto From Genesis

Table of Contents

TokenInsight

Other articles published on May 3, 2023

BitFlyer Slapped With a $1.2 Million Fine for Violating Cybersecurity Rules

BTC Traders Could be in Soup as Bitcoin Oscillates Between Red and Gree

Top Analyst Decodes the Crypto Landscape: $BTC, $ETH, and $PEPE in Focus

Crypto Exchange Bybit Now Offers Lending Services

Will Dogecoin (DOGE) attract more eyeballs? Or is it better to buy RenQ Finance?

Chainlink (Link) Holders Are Diversifying To An Amazing New Defi Project – Here’s Why

Join our free newsletter for daily crypto updates!