Key Takeaways:
- FTX Recovery Trust is suing Genesis Digital Assets and its co-founders to recover over $1 billion allegedly misappropriated by Sam Bankman-Fried.
- The lawsuit claims Alameda Research used FTX customer funds to buy overvalued GDA shares and make direct payments to its co-founders.
- The Trust has begun repaying creditors, with over $6.2 billion distributed so far and another $1.6 billion scheduled for release on September 30.
The FTX Recovery Trust has launched a lawsuit to recover more than $1 billion from Genesis Digital Assets (GDA), its U.S. affiliates, and co-founders Rashit Makhat and Marco Krohn.
Filed in the U.S. Bankruptcy Court for the District of Delaware, the complaint alleges that former FTX CEO Sam Bankman-Fried diverted $1.15 billion in customer funds during 2021 and 2022 to invest in GDA, despite mounting debts at FTX’s sister company, Alameda Research.
FTX Trust sues bitcoin miner Genesis Digital, seeks $1.15 billion over 'reckless' Sam Bankman-Fried investment https://t.co/EFaqWEm7R0
— The Block (@TheBlock__) September 23, 2025
Alameda reportedly paid over $500 million for 154 preferred shares in GDA and transferred an additional $550.9 million directly to its co-founders at inflated valuations.
The Trust claims these deals were structured to personally benefit Bankman-Fried, who owned 90% of Alameda, while leaving losses with FTX customers and creditors.
At the time, GDA operated in Kazakhstan amid an energy crisis, and the suit alleges that Bankman-Fried ignored red flags and relied on unreliable financial documents.
This case is part of broader efforts to recover assets after FTX’s collapse.
The Trust has already secured settlements, including $175 million from Genesis Global Trading, and has begun distributing recovered funds, with $1.6 billion more expected on September 30.
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