FTX seeks to claw back $3.9B from Genesis; undersold SUI contracts by 1000x
FTX’s bankruptcy lawsuit progressed as the company moved to recover $3.9 billion from Genesis. Meanwhile, his previous FTX sale was tied to the launch of the SUI token.
FTX Aims to Collect $3.9 Billion in Genesis Funds
and May 3rd FTX said it intends to initiate an adversarial lawsuit against Genesis Global Capital and its other affiliates.
The filing called Genesis the “main feeder fund” of FTX and Alameda, and said Genesis received a total of $3.8 billion in avoidable remittances from FTX debtors.
Specifically, FTX debtors have repaid $1.8 billion in loans and provided Genesis with $273 million in collateral. FTX debtors also allowed Genesis Global Capital and GGC International to withdraw $1.6 billion from his FTX.com and $213 million from her respectively.
As such, FTX says it will “seek to recoup the funds” Genesis received through evasive action, aiming to return funds to millions of creditors who owe more than $11 billion in debt.
FTX is seeking only limited relief, saying it can file a claim and get a ruling. FTX said the attempt to enforce the demands would occur in Genesis’ own bankruptcy case, not FTX’s bankruptcy case.
FTX Likely Undervalues SUI Contracts
As Mysten Network’s SUI token began trading on the cryptocurrency market on May 3, previous proceedings involving FTX’s assets also drew attention.
In 2022, FTX and its affiliates have purchased a token contract that can acquire 888 million SUI. The SUI token is worth $1.38 at the time of writing, meaning FTX Group could redeem these contracts for $1.2 billion.
However, FTX started selling these token contracts in March, April 14th. At that time, the contract was sold for $1 million. That’s about a thousand times less than if you redeemed your tokens today.
FTX also sold Mysten Labs shares for $95 million along with the SUI contract.
Post-FTX is trying to get $3.9 billion back from Genesis. 1000x undervalued, his SUI contract first appeared on CryptoSlate.
