FTX Trust has initiated a lawsuit to recover over $1 billion from Genesis Digital Assets (GDA), alleging that former CEO Sam Bankman-Fried misappropriated customer funds for personal benefit. The FTX Recovery Trust filed a complaint in the US Bankruptcy Court for the District of Delaware, detailing investments made under Bankman-Fried's direction in shares of GDA at inflated prices, totaling approximately $1.15 billion. The lawsuit claims these transfers were designed to let Bankman-Fried, who owned 90% of Alameda Research, benefit at the expense of FTX’s creditors. The complaint cites that Bankman-Fried overlooked significant red flags and relied on misleading financial documents from GDA. With FTX in bankruptcy since 2022, the Recovery Trust has begun repaying creditors and continues its efforts to recover misappropriated funds from the exchange’s operational collapse.

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