The investment
Genesis Digital Assets was one of the largest bitcoin miners in the world. Most of its capacity was in Kazakhstan, with further sites in the United States and Sweden. Between 2021 and 2022, Alameda invested more than $1 billion and ended up with a stake of roughly 20%. According to the Trust's complaint, about $550 million of that money went not to the company but to its two co-founders.
The Trust later called it "one of Bankman-Fried's most reckless investments with commingled and misappropriated funds". Its complaint said Genesis was grossly overvalued. The company did not provide audited accounts, and its unaudited figures ignored the power caps and political unrest that hit miners in Kazakhstan.
The lawsuit, and how it ended
| Date | Event |
|---|---|
| Sep 2025 | The FTX Recovery Trust sues Genesis, its US affiliates and other recipients of the funds to recover about $1.15 billion as fraudulent transfers |
| Jan 2026 | Genesis and its US entities move to dismiss |
| 20 Feb 2026 | The Trust files its opposition |
| 3 Mar 2026 | The court approves a joint stipulation to stay the case |
| 15 Jun 2026 | The Trust files a voluntary notice of dismissal with prejudice |
| Jun–Aug 2026 | SWI Group agrees a $500 million deal for a stake in Genesis. By late August it controls more than 70% and renames the business SWI Digital |
| 12 Oct 2026 | SWI announces an €800 million raise at a €6.1 billion valuation, with plans to turn the Genesis sites into AI data centres |
Two details matter:
- The stay. A joint stay, like the one in March, is what parties usually ask for when they are negotiating.
- "With prejudice." It means the Trust cannot bring these claims again.
Lawyers do not normally drop a $1.15 billion claim for nothing. But the notice itself says nothing about what was exchanged.
What did the estate get?
Honestly: we do not know, and neither does anyone outside the deal.
- The dismissal notice mentions no settlement or payment.
- No settlement or sale motion appears in the adversary docket. Settlements of estate claims after the plan took effect do not always need a separate court approval, so this does not prove that nothing was paid.
- The Trust's report for the quarter ended 30 June 2026 (D.I. 36154) does not mention Genesis or SWI.
- For that quarter, the quarter of the dismissal, it records about $359 million of proceeds from sales of venture investments and $48 million of litigation recoveries.
- It does not break either figure down. A Genesis payment, if there was one, could sit in either line, or in neither.
- SWI's chief executive told the WSJ that disputes with FTX and other shareholders had been settled, without giving terms.
- It is not public whether the estate still holds Alameda's roughly 20% stake, sold it into the SWI transaction, or exchanged it as part of the settlement.
The likeliest reading is that the dismissal, the estate's stake and the SWI deal were resolved together in June. That is our inference from the timing, not a fact on the record.
Does it change the next FTX distribution?
Probably not in a way you can measure yet.
If the estate received cash, it goes into the pool for future distributions. The Trust had distributed $10.3 billion by 30 June 2026 and about $900 million more on 31 July. Against more than $11 billion already paid out, even a few hundred million dollars would move recoveries on remaining claims only modestly.
If the estate still holds equity, its value now depends on SWI's AI plans, and it would turn into cash only on a later sale.
Either way, the sixth distribution has not been announced. Our estimate is still a record date around mid-December 2026 and a payment around late January 2027. These are estimates, not FTX dates.
For a claim holder deciding whether to sell or hold, the Genesis episode cuts both ways. It shows the estate still has assets and claims to turn into cash. It also shows how little creditors are told about the terms.
What to watch
- The Trust's Q3 2026 report, for the quarter ended 30 September. The Q2 report came about seven weeks after the quarter ended, so we expect this one around mid-November. That is our expectation, not a filing date. A Genesis line, if there is one, would answer the question.
- Any SWI disclosure on how it bought out existing shareholders.
- The court's omnibus hearings on 19 November and 17 December 2026, and FTX's announcement of the sixth record date.
We will update this article when any of these appears.
Our take
The Genesis suit was one of the larger single recovery actions in the FTX case, and it ended quietly. Creditors are entitled to ask what the estate got for dropping it. Until the Trust says, treat Genesis as a closed lawsuit with an unknown result, not as money on the way.
FAQ
Did FTX get its money back from Genesis Digital Assets?
It is not known. The FTX Recovery Trust dismissed its $1.15 billion lawsuit against Genesis with prejudice on 15 June 2026. The dismissal notice does not mention any settlement or payment, and the Trust's report for that quarter does not mention Genesis.
Why did the FTX Recovery Trust drop the Genesis lawsuit?
The Trust has not explained. The case had been stayed by agreement since March 2026, and SWI Group, which took control of Genesis in mid-2026, said disputes with FTX had been settled. That points to a negotiated outcome, but its terms are not public.
Does the estate still own part of Genesis Digital Assets?
It is not public. Alameda held roughly 20% before the bankruptcy. Whether the estate still holds it, sold it to SWI or gave it up as part of the settlement has not been disclosed.
Will the Genesis outcome increase the sixth FTX distribution?
Only if the estate received cash, and then probably modestly relative to the more than $11 billion already distributed. The sixth distribution has not been announced.
Sources
- Kroll Restructuring Administration, FTX Recovery Trust v. Genesis Digital Assets Limited et al. (Adv. Proc. 25-52358, Bankr. D. Del.): order approving stipulation to stay (D.I. 28, 3 March 2026); voluntary notice of dismissal with prejudice (D.I. 31, 15 June 2026).
- FTX Recovery Trust, Q2 2026 financial report, statement of net assets in liquidation (D.I. 36154, filed 17 August 2026).
- Bloomberg Law, "FTX Trust Drops $1.15 Billion Lawsuit Against Genesis Digital", 16 June 2026.
- The Block, "FTX Trust sues bitcoin miner Genesis Digital, seeks $1.15 billion", 23 September 2025.
- CoinDesk, "SWI raises $894 million to repurpose former FTX bitcoin miner Genesis Digital to AI", 12 October 2026.
- The Crypto Times, "FTX Trust Drops Genesis Digital Lawsuit as SWI Closes $500M Stake", 12 October 2026.
Disclaimer: this article is for information only and is not legal, tax or financial advice. Paxtibi buys bankruptcy claims and offers payment processing, so we have a commercial interest in this topic.