The FTX Recovery Trust has set up its next creditor distribution for March 31, 2026, with a Feb. 14, 2026 record date to determine eligibility, while it simultaneously pursues a $1.15 billion clawback action against Genesis Digital Assets. The dual track signals an estate strategy focused on near-term payouts alongside litigation-driven recoveries.
At the center of the dispute are alleged pre-bankruptcy transfers linked to Alameda Research and former CEO Sam Bankman-Fried, and Genesis Digital Assets is pushing back by moving to dismiss the case. That posture sets up a high-stakes legal fight that could influence future distribution capacity.
Alleged transfers and legal theory
The complaint alleges that more than $1.15 billion moved from Alameda into Genesis between October 2021 and April 2022, and it contends that many transfers were funded by FTX.com customer deposits and are therefore voidable. The estate also asserts that a substantial portion of the funds flowed to Genesis co-founders Rashit Makhat and Marco Krohn for personal benefit.
The trust is seeking relief under federal bankruptcy law and Delaware’s Uniform Fraudulent Transfer Act, advancing claims of both actual and constructive fraud. The legal framing ties the disputed transfers to the liquidity breakdown that preceded FTX’s collapse and to Sam Bankman-Fried’s subsequent fraud convictions.
The filing’s tone is pointed, characterizing the activity as “reckless investments… funded by looted funds burning a hole in Alameda’s pocket”. Genesis Digital Assets’ dismissal motion indicates it intends to contest both the facts and the legal theory aggressively.
Distribution mechanics and what to watch
On the distribution side, the trust has indicated a Feb. 14, 2026 record date and a March 31, 2026 payout date, and it reports about $7.1 billion already distributed across three prior rounds. It is also considering a proposed $2.2 billion reduction in the disputed claims reserve to free additional funds for distribution, which would be a meaningful lever for accelerating payouts.
From a market-structure and treasury standpoint, scheduled distributions can increase near-term liquidity for claimants, while litigation outcomes and reserve adjustments can reshape forward payout expectations. That mix creates timing risk for anyone modeling cash receipts or secondary pricing for claims.
The key gating items are the court’s handling of Genesis’s motion to dismiss and the estate’s decision on the proposed $2.2 billion reserve cut. Those two processes will largely determine how quickly additional value can be converted into distributions and how credible the litigation-led recovery strategy proves in practice.