The FTX Trust has dropped its lawsuit against Bitcoin mining company Genesis Digital Assets Ltd.,
ending its efforts to recover $1.15 billion it claims was fraudulently transferred by the co-founder of the bankrupt cryptocurrency exchange.
The trust, created to recover funds from FTX's creditors, has permanently withdrawn all claims, according to a document filed Monday in the U.S. Bankruptcy Court for the District of Delaware.
The lawsuit alleged that Genesis Digital, along with its affiliates and co-founders, received commingled and misappropriated funds from FTX co-founder Sam Bankman-Fried between August 2021 and April 2022.
According to the trust, Bankman-Fried used his personal hedge fund, Alameda Research LLC, to purchase several tranches of shares in a Bitcoin mining company at significantly inflated prices.
Genesis Digital, a Cyprus-registered company headquartered in Dubai, filed a motion to dismiss the lawsuit in January. The company argued, among other things, that it should not be required to defend itself in U.S. bankruptcy court because it has no offices in the United States.