The FTX Recovery Trust filed a lawsuit in the US Bankruptcy Court against Genesis Digital Assets, seeking to recover over $1 billion in funds misappropriated by former CEO Sam Bankman-Fried. The lawsuit alleges that Bankman-Fried directed investments in GDA shares at inflated prices, amounting to more than $1.15 billion, during a period when FTX was diverting customer funds to cover debts owed to its sister company, Alameda Research. The complaint asserts that these transfers were designed to benefit Bankman-Fried personally while imposing losses on FTX's creditors. Additionally, it claims that Bankman-Fried ignored significant red flags when investing in Genesis Digital, which was suffering from a regional energy crisis in Kazakhstan. The trust has already begun reimbursing creditors after the bankruptcy filing in 2022, with a payout plan already initiated in 2023. More distributions are expected soon.

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