FTX Trust sues Bitcoin mining company Genesis Digital, seeking to recover $1.5 billion

ChainCatcher news, the FTX restructuring trust has sued the Bitcoin mining company Genesis Digital Assets in the U.S. Bankruptcy Court for Delaware, accusing former FTX CEO Sam Bankman-Fried of investing $1.15 billion in the company through Alameda using commingled and misappropriated funds, calling it "one of his most reckless investments." The lawsuit seeks to recover $1.5 billion.

The FTX restructuring trust stated that Genesis Digital is located in Kazakhstan, is severely overvalued, and that the unaudited financial statements provided are "not reflective of reality," while the local area was facing power shortages, new taxes, and energy restrictions at the time. A spokesperson for Genesis Digital declined to comment.