FTX Trust Don Sue Genesis Digital for $1.15B for Misuse of SBF Fund
FTX Recovery Trust don file $1.15 billion lawsuit on September 22 for US Bankruptcy Court for District of Delaware against Genesis Digital Assets, dem affiliates and co-founders Rashit Makhat and Marco Krohn. Di complaint talk say former CEO Sam Bankman-Fried direct Alameda Research to use customer money to buy GDA shares at jacked up price dem. About $500 million spend on preferred stock and $550.9 million siddon transfer go Makhat and Krohn for extra equity. FTX Recovery Trust wan make back all dis misused money to help raise creditors recovery. Since 2022 bankruptcy, di trust don distribute over $6 billion to claimants and plan to release another $1.6 billion on September 30.
Neutral
Di lawsuit dey target corporate entities and how dem misuse customer money, no be any specific crypto token. For short term, legal wahala no go make price move because no tradable token dey affected directly. For long term, if dem fit recover money well, e fit help creditors but e no go change fundamental or supply of digital assets. So market impact go just neutral.