The FTX show rolls on with a new plot twist. The FTX Recovery Trust is hauling Genesis Digital Assets to court, demanding a cool $1.15 billion back.
The accusation? Sam Bankman-Fried allegedly funneled customer funds into GDA at wildly inflated prices before the 2022 crypto earthquake that shook the industry.
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Enrich SBF, dumping losses on the users?
This latest legal thunderstorm landed in the US Bankruptcy Court for Delaware, where the FTX Trust is on a mission, claw back every dime lost to shady dealings.
Documents reveal that Bankman-Fried, along with Alameda Research’s CEO Caroline Ellison, used both Alameda and direct transfers to pour more than $1 billion into Genesis Digital during 2021-2022.
Alameda’s share? Over $500 million spent on 154 preferred GDA shares at prices that defy logic and market fairness.
The drama thickens with another $550.9 million allegedly handed straight to GDA’s co-founders, Rashit Makhat and Marco Krohn, for even more stakes.
The lawsuit paints these not as genuine investments, but rather as a slick scheme to enrich Bankman-Fried himself.
Owning 90% of Alameda, he allegedly inflated GDA’s valuation to reap the perks while dumping losses on FTX’s poor users and creditors.
Targets
The filing doesn’t pull punches. It calls out reckless spending and blatant fraud at the customers’ expense.
Alameda, swimming in billions of borrowed customer deposits from FTX.com, supposedly kept shoveling cash into GDA despite the company’s shaky status, located in energy-crisis-hit Kazakhstan, with financial reports bearing no relation to reality. You might call it the perfect storm of bad judgment and worse intentions.
FTX Recovery Trust isn’t alone on this crusade. Since the 2022 collapse, it’s clawed back billions through lawsuits and settlements.
Genesis Global Trading, a separate entity from Genesis Digital Assets, already coughed up $175 million in 2023.
Other targets include loan recipients, political donors, and various sponsorship deals tangled in FTX’s downfall.
Creditors are getting less
Creditors have seen over $6 billion returned so far. Starting with $1.2 billion in February, $5 billion in May, and now an additional $1.6 billion distribution queued for September 30.
But don’t break out the champagne just yet, many creditors are getting less than the real value of their lost assets.
Repayments use crypto prices from the crash date, November 2022, when Bitcoin hovered around $20,000. Fast forward, and Bitcoin’s moonwalked to over $124,000.
That gap means creditors receive crumbs compared to today’s values, sparking grumbles over fairness.
Despite heated debates, bankruptcy rules today underscore valuations at filing dates, fueling ongoing arguments.
Disclosure:This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Kriptoworld.com accepts no liability for any errors in the articles or for any financial loss resulting from incorrect information.
Cryptocurrency and Web3 expert, founder of Kriptoworld
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With years of experience covering the blockchain space, András delivers insightful reporting on DeFi, tokenization, altcoins, and crypto regulations shaping the digital economy.
📅 Published: September 26, 2025 • 🕓 Last updated: September 26, 2025
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