Bankrupt crypto alternate FTX desires to get better billions of greenbacks from Digital Forex Group’s bankrupt crypto lending subsidiary Genesis.

In a motion filed on May maybe also merely 3, attorneys for the FTX Group sought to claw motivate $3.9 billion price of cash and crypto from Genesis, from “avoidable transfers” that were made 90-days earlier than the alternate declared financial peril.

FTX’s attorneys argued that unlike other collectors and customers, Genesis became largely repaid by FTX debtor Alameda Compare.

“Genesis became likely the most most essential feeder funds for FTX and instrumental to its deceptive commerce mannequin. At one point in 2021, GGC had over $8 billion of powerful loans to FTX Debtor Alameda Compare Ltd,” the filing stated.

The alternate is looking out for out $1.8 billion price of loans that were repaid and $273 million price of collateral that became pledged to Genesis. Furthermore, the firm is additionally having a ogle to recoup $1.6 billion price of crypto withdrawn by Genesis from FTX.com.

The attorneys further made a case for the avoidance claims to be prolonged to Genesis Global Capital’s world entity, which made $213 million price of withdrawals from the bankrupt alternate.

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“The Avoidance Actions will look to claw motivate funds obtained by Genesis and non-debtor associates so as that these funds may presumably well very effectively be shared with all other collectors of the FTX Debtors within the FTX Chapter 11 Circumstances,” stated the filing. These collectors embrace loads of million FTX customers owed over $11 billion.

FTX’s financial peril property has entered an agreement to claw motivate $400 million from Modulo Capital, a lesser-known trading firm funded by light FTX CEO Sam Bankman-Fried. The debtors are additionally looking out for out to claw motivate $3.2 billion of payments made to light executives, most of which went to Bankman-Fried and his inside of circle.