FTX’s Alameda Steers Shady Scheme With Genesis Digital

• Genesis Digital Assets was the largest venture investment made by Alameda Research
• Genesis Digital raised $1.15 billion from Alameda in less than nine months.
• Digital Currency Group (DCG) and Genesis allegedly owe customers $900 million

Genesis Digital Assets was the largest venture investment made by Alameda Research, the sister firm of FTX, and the company at the center of its bankruptcy. According to documents made public by Bloomberg on December 3, Genesis Digital raised $1.15 billion from Alameda in less than nine months.

Read CRYPTONEWSLAND on google news

The money injection was made between August 2021 and April of this year, prior to the decline in cryptocurrency values. Bitcoin mining company Genesis Digital is the largest in the United States. It is unrelated to Genesis Capital, the trading firm with $175 million in money trapped in an FTX trading account.

Former FTX CEO Sam Bankman-Fried admitted participation in Alameda’s venture decisions, including the investment in Genesis Digital, after originally denying it to regulators. The documents indicate that Alameda’s capital deployment occurred at four different times: $100 million in August 2021, $550 million in January, $250 million in February, and $250 million in April 2022.

The Financial Times reported on 3 December, citing sources with knowledge of the subject, that bitcoin lender Genesis and its parent company Digital Currency Group (DCG) allegedly owe Gemini’s customers $900 million.

In other news, the United States Trustee overseeing FTX’s bankruptcy proceedings has dubbed the exchange the “fastest big corporate failure in American history,” and has called for an impartial investigation into its demise.

Vara has called for an independent investigation of FTX, stating it was “especially important because of the wider implications that FTX’s collapse may have for the crypto industry.”

Recommended News:

• Binance Will not Invest in Crypto Lender Genesis: WSJ
• Court Document Reveals Three Arrows Capital Owes Whopping $3.5B
• SBF and Alameda Allegedly Use FTX In ‘Infinite Money’ Scheme
• Breaking: SBF Transferred at Least $4B in FTX Funds to Support Alameda
• A Full List of Entities With Exposure to FTX and Alameda is Out