The FTX Recovery Trust is suing Genesis Digital Assets, a Bitcoin mining company, for $1.15 billion, alleging that former CEO Sam Bankman-Fried mismanaged funds by purchasing shares with commingled customer cash at inflated prices. The lawsuit, filed as part of FTX's restructuring efforts following its collapse in 2022, claims Bankman-Fried made reckless investments, including in Genesis, using misappropriated funds from FTX customers. He is currently serving a 25-year prison sentence after being found guilty of fraud. The suit contends that Bankman-Fried bought shares of Genesis through Alameda Research, which he significantly owned. The lawsuit seeks the recovery of funds lost due to these fraudulent transfers, emphasizing the detrimental impact of Bankman-Fried's actions on the exchange's customers.

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