Cryptocurrency exchange company, FTX, has filed a motion in the court to claw back almost $4 billion of resources from a bankruptcy case, of other crypto exchange, Genesis Global Capital. FTX and Alameda Research, its affiliate entity, filed for bankruptcy in November last year. Genesis, a subsidiary of Digital Currency Group (which is the parent company of CoinDesk), filed for bankruptcy in January of this year.
According to the filing, the companies returned $1.8 billion dollars in loans back to Genesis and pledged $273 million to it in the 3 months preceding the bankruptcy filing. Genesis also allegedly withdrew close to $1.6 billion from FTX and another of its subsidiaries reviewed about $213 million in the same period.
The hearing for the motion is to take place on the 25th of May and the purpose of the motion to "claw back" is that the recovered funds need to be shared with the creditors of FTX, which include millions of customers owed approximately $11 billion at the time of their bankruptcy filing.
This motion has been filed in order to bring some form of justice and protection to the creditors of FTX who, otherwise, may have been left out of all the proceedings and would not be able to get any recompense for their losses.
So far, it is hard to predict the results, however, it is important to stay updated on the progress of the FTX bankruptcy and the motion filed. This motion could be a step in the right direction for those affected by the bankruptcy, as it would give them some form of recompense for their losses in the crypto market. It could also serve as an example of a court taking note of the victims adversely affected by the crypto market and the companies involved.
Sophie Young
- 2023-05-04
Cryptocurrency Exchange FTX Motion Filed in Court to Claw Back Almost $4 Billion
FTX and its affiliate entity, Alameda Research, have filed a motion in the court to claw back close to $4 billion of resources from a bankruptcy case of other crypto exchange, Genesis Global Capital. The motion is being made in order to allow FTX's creditors, which include millions of customers owed approximately $11 billion at the time of the bankruptcy filing, to receive some form of recompense for their losses.
![CandleFocus FTX-AlamedaResearch-Cryptocurrency-Bankruptcy](https://images.candlefocus.com/Cryptocurrency-Exchange-FTX-Motion-Filed-in-Court-to-Claw-Back-Almost-dollar4-Billion.jpg)