On May 25th, a hearing will take place to address FTX’s request.
A cryptocurrency exchange called FTX, which doesn’t have enough money to pay its debts, is asking another bankrupt company called Genesis Global Capital to give back nearly $4 billion that it owes. FTX made this request in a court document on Wednesday.
Before FTX went bankrupt last November, Genesis Global Capital loaned almost $8 billion to a company affiliated with FTX called Alameda Research. Recently, Genesis said that it has already gotten most of that money back. Genesis is owned by Digital Currency Group, which is the parent company of CoinDesk. But even though Genesis has its own money troubles and filed for bankruptcy earlier this year, FTX still wants Genesis to return about $4 billion more.
In the 90 days before FTX went bankrupt, Alameda Research, which is associated with FTX, paid back $1.8 billion it owed to Genesis Global Capital. Alameda also promised to give Genesis another $273 million. During that time, Genesis and another subsidiary, Genesis Global Capital International, withdrew $1.6 billion and $213 million, respectively, from FTX. This information was included in the court document FTX filed on Wednesday.
FTX plans to take legal action to get back money that Genesis and other companies that didn’t go bankrupt received. FTX wants to share this money with all the other people and companies that it owes money to. These include millions of customers who are owed more than $11 billion. This information was also included in the court document that FTX filed.