FTX Demands $1.15 Billion from Genesis Digital Assets in Major Crypto Clash

FTX drops bombshell $1.15 billion claim against Genesis Digital Assets—shaking crypto's institutional landscape.

Legal Shockwaves

The collapsed exchange's massive claim targets one of Bitcoin mining's biggest players. This isn't just another bankruptcy filing—it's a $1.15 billion power move that could redefine creditor recoveries across the digital asset space.

Mining Sector Implications

Genesis Digital Assets, among the world's largest mining operations, now faces existential pressure from FTX's estate. The timing couldn't be more brutal—just as Bitcoin mining profitability shows signs of recovery.

Creditor Domino Effect

This claim sets precedent for how major crypto bankruptcies handle inter-company liabilities. Other distressed firms watch closely as FTX's lawyers aggressively pursue every available dollar.

Wall Street's watching this crypto drama unfold with the usual mix of horror and fascination—another reminder that in digital assets, the only thing moving faster than blockchain transactions is lawyers chasing recoveries.

En bref

• The FTX Recovery Trust is suing Genesis Digital Assets to recover $1.15 billion illegally invested by Sam Bankman-Fried.
• The former CEO of FTX allegedly used customer funds via Alameda Research to purchase shares in the miner at “outrageously inflated prices.”
• This legal action is part of an overall strategy to recover $16.5 billion in recoverable assets.

A new legal battle in the wake of FTX

The FTX Recovery Trust, responsible for recovering funds intended for the bankrupt exchange’s creditors, filed a complaint against Genesis Digital Assets (GDA) on Monday. The main accusation is clear: Sam Bankman-Fried allegedly invested $1.15 billion in the bitcoin miner via Alameda Research, diverting clients’ money from FTX.

According to the legal document, Sam Bankman-Fried made these investments at “outrageously inflated prices,” allowing him to gain a personal advantage. Already sentenced to 25 years in prison, he reportedly made GDA one of his riskiest bets.

At the time of the events, Genesis Digital Assets focused its activities in Kazakhstan. Today, the company has expanded its footprint with mining farms in the United States and Europe, while establishing its headquarters in Dubai.

On the defense side, silence dominates. GDA has refused to respond to the accusations, while former legal advisers of FTX deny any responsibility and assert they were never aware of an organized fraud.

An offensive Trust, between reimbursements and legal battle

This new legal offensive is part of a broader reconquest strategy. Since the beginning of 2025, the FTX Recovery Trust has multiplied initiatives to restore creditor confidence.

After two waves of reimbursements already made, a third tranche of $1.6 billion is to be paid by the end of September. At this stage, nearly $7.8 billion have been redistributed, but initial losses still exceeded $16 billion.

These efforts reflect the determination of John J. RAY III, the seasoned lawyer appointed at the head of the Trust, to definitively turn the FTX page. Yet, each new legal proceeding rekindles the wounds left by the bankruptcy and fuels mistrust towards centralized platforms. 

For many observers, the FTX scandal now embodies the excesses of an industry that prospered for too long without real safeguards.

In short, the complaint against Genesis Digital Assets illustrates this determination to recover every dollar swallowed in the turmoil. But if it were to succeed, it WOULD especially remind how much Sam Bankman-Fried’s opaque management weakened the entire sector. 

Between progressive reimbursements and endless litigation, the toxic legacy of FTX continues to weigh heavily on the credibility of the crypto ecosystem.

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