- SBF’s X account activity sparks scrutiny as he serves a 25-year federal prison sentence.
- FTX Recovery Trust sues Genesis Digital to recover $1.15B in alleged customer fund misuse.
- New lawsuit expands recovery efforts after prior $175M Genesis Global Trading settlement.
Sam Bankman-Fried’s verified X account surprised markets this week with a one-word post: “gm.” The short message was the first update since March and raised questions because inmates in federal prison cannot directly access social media.
The account later clarified that a friend had posted on his behalf. Even so, the moment drew attention back to the former FTX chief, now serving a 25-year sentence tied to the exchange’s 2022 collapse.
Related: SBF Breaks Silence from Prison: Blasts Biden, SEC, and “Muffin” Currency
FTX Trust Files $1.15B Suit Against Genesis Digital
The account activity coincided with a new legal offensive. On September 22, the FTX Recovery Trust filed a lawsuit in U.S. Bankruptcy Court in Delaware, seeking $1.15 billion from Genesis Digital Assets Ltd. and its co-founders.
Judge Karen B. Owens will oversee the case. The complaint alleges that FTX customer funds were funneled through Alameda Research and used to buy inflated shares in Genesis Digital. Internal records described the valuations as “insane and off-market.”
More than half of the disputed money allegedly went to co-founders Rashit Makhat and Marco Krohn. The trust argues that Sam Bankman-Fried personally directed the transactions, despite concerns about unbuilt U.S. data centers and questionable financials.
Building the Recovery Track
The claim adds to a long list of recovery efforts since FTX’s collapse. Billions were moved from FTX.com to Alameda during 2021 and 2022. In 2023, the trust secured a $175 million settlement with Genesis Global Trading, a separate entity from Genesis Digital.
The latest case leans on bankruptcy law and Delaware statutes covering fraudulent transfers. Success would add to customer recoveries, though the process may stretch for years.
Related: FTX $1.6 Billion Creditor Payout Sept. 30 Turns Into Crypto’s Next Liquidity Test
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