Executives at the now collapsed crypto lender Genesis were offered FTX crypto tokens (FTT) at a discount rate before they were offered to the public, according to the Financial Times.
Genesis was a key source of funding for Alameda Research, the trading firm at the heart of FTX founder Sam Bankman-Fried’s alleged theft of customer assets from FTX.
Genesis execs were offered the opportunity to invest in presale tokens of FTT, the FTX native token that launched in 2019, and Serum, which launched in 2020 with backing from FTX and Alameda.
Thomas Braziel, co-founder of 507 Capital, which has bought claims in several crypto bankruptcies including Genesis and FTX, said: “[Bankman-Fried] really took care of people who he thought were important to him. He was doing a good job of keeping everybody’s bread buttered.”
Genesis’s $226m exposure to Bankman-Fried’s ventures when they collapsed had previously been much larger, but in the summer of 2022, Alameda paid back loans to Genesis and other lenders as crypto markets faltered.
US authorities accused Bankman-Fried of repaying creditors in 2022 with funds from FTX without telling them the true source of the money.
Bankman-Fried has denied any wrongdoing.
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