FTX seeks to claw again $3.9B from Genesis; undersold SUI contracts by 1000x

FTX’s chapter case proceeded as the corporate moved to get well $3.9 billion from Genesis. In the meantime, an earlier FTX sale grew to become related with the launch of SUI token.

FTX goals to get well $3.9B in Genesis funds

In a May 3 submitting, FTX mentioned it intends to start adversary proceedings in opposition to Genesis International Capital and different related corporations.

That submitting referred to as Genesis a “major feeder fund” for FTX and Alameda and mentioned that Genesis acquired avoidable transfers from FTX’s debtors totaling $3.8 billion.

Particularly, FTX debtors repaid $1.8 billion in loans and supplied $273 million of collateral to Genesis. FTX debtors additionally allowed Genesis International Capital and GGC Worldwide to withdraw $1.6 billion and $213 million from FTX.com, respectively.

As such, FTX says it “will search to claw again funds” that Genesis acquired by avoidance actions. It goals to return funds to hundreds of thousands of collectors owed over $11 billion.

FTX mentioned it requests solely restricted aid, permitting it to file and obtain adjudication for its declare. FTX mentioned any makes an attempt to implement the request would happen in Genesis’ personal chapter case — not in FTX’s chapter case.

FTX doubtless undervalued SUI contracts

Earlier proceedings involving FTX’s belongings additionally attracted consideration as Mysten Community’s SUI token started to commerce on the crypto market on May 3.

In 2022, FTX and its associated corporations bought token contracts that might have allowed them to acquire 888 million SUI. The SUI token was price $1.38 on the time of writing, which means that the FTX group may have redeemed these contracts for $1.2 billion.

Nevertheless, FTX moved to sell those token contracts in March and accomplished the sale on April 14. When it did so, it offered the contracts for $1 million — roughly 1000 occasions lower than may have redeemed the tokens for at present.

FTX additionally offered $95 million of Mysten Labs shares alongside its SUI contracts.

The put up FTX seeks to claw back $3.9B from Genesis; undersold SUI contracts by 1000x appeared first on CryptoSlate.