ScienceNot yet confirmed elsewhere1 publisher2 min readPublished
FTX Recovery Trust ends its $1.15 billion Genesis Digital suit with a two-page notice
On June 15 the FTX Recovery Trust dropped its $1.15 billion clawback case against Genesis Digital with prejudice, without saying what the estate received. SWI, which controls Genesis Digital, announced an EUR 800 million raise for AI compute and data centers on October 12.
The Scientist · Science desk
Four figures. SWI closed a $500 million stake in Genesis Digital on June 15, the day of the dismissal. SWI announced a EUR 800 million capital increase on October 12, set at a final valuation of EUR 6.1 billion. SWI said it completed a controlling stake of more than 70% in Genesis Digital.
| Figure | Value | Note | Claim |
|---|---|---|---|
| SWI stake closed June 15 | 500 $ million | 2 | |
| SWI capital increase, Oct. 12 | 800 EUR million | 3 | |
| Final valuation set for the raise | 6.1 EUR billion | 4 | |
| SWI controlling stake, more than | 70 % of Genesis | 13 |
What happened
- The trust filed under a federal rule that lets a plaintiff end a case by notice, so no judge had to approve the dismissal.
- SWI set the raise at a final valuation of EUR 6.1 billion and issued the shares to institutional investors.
- SWI announced on August 25 that it had finished acquiring a controlling stake of more than 70% in Genesis Digital, and that the company would be renamed SWI Digital.
Why it matters
- cost The creditors the trust collects for cannot revisit this claim. It cannot be brought again against any of the seven defendants, the co-founders included, so whatever the estate received is the whole recovery.
- constraint Because the dismissal needed no court approval, the public record on terms is whatever the parties choose to say. So far the only statement on terms is one executive's remark to a newspaper.
- exposure The raise was announced 119 days after the suit ended, so the $1.15 billion claim is no longer pending against the U.S. platform that SWI is building out of Genesis Digital.
The dates keep the two events apart. SWI's $500 million stake was announced on June 15, the day the trust filed its notice [2], and the EUR 800 million raise came 119 days later, on October 12 [18]. They are separate announcements in different currencies, so we would not add them.
The rule the trust used covers the stage before a defendant files an answer or a motion for summary judgment [7]. Genesis Digital's one reported filing was a January 2026 motion to dismiss, according to Bloomberg Law. Its argument was that a Cypriot company with its headquarters in Dubai should not be required to answer the claims in a U.S. court [11].
The trust's underlying allegation was that Sam Bankman-Fried used Alameda Research to buy Genesis Digital shares at inflated prices [10]. Whether it was any good is still open. None of the filings in the report rules on it.
The report's only account of an outcome comes from SWI's chief executive. Max-Herve George said in comments to the Wall Street Journal that every legal dispute with FTX and other shareholders has been settled [20]. The two-page notice does not mention a settlement [5].
George also told the Journal that SWI has "zero interest" in bitcoin mining [14]. According to George, SWI is in the process of selling the three small mining sites Genesis Digital still has in Kazakhstan [15].
On the money side, SWI said the raise brings equity raised since March 2026 to more than EUR 1 billion [17]. The two rounds it names, EUR 260 million in March and EUR 800 million now, add to EUR 1.06 billion [19]. Its release does not name the institutional investors who took the new shares [16].
What to watch
- Any trust report or SWI filing that states what the estate received, which would test George's statement that the FTX disputes are settled.
- Whether SWI names the institutional investors in the EUR 800 million raise.
- Completion of the sale of Genesis Digital's last three Kazakhstan mining sites.
Clarity's read
What the record supports and how the coverage leans. The claims behind it follow.
Reality
- Evidence55
- Adoption
- Insufficient
- Hype gap
- Insufficient
- Incentives
- Insufficient
- Confidence55
Claim ledger
Ranked by verification strength, evidence, and original report placement.
- [1]
The FTX Recovery Trust dismissed its $1.15 billion clawback suit against Genesis Digital with prejudice on June 15.
- [2]
On the same day as the dismissal, June 15, SWI said it had closed a $500 million stake in Genesis Digital.
- [3]
SWI announced a EUR 800 million capital increase on October 12; it said the proceeds will fund data center and AI compute capacity in Europe and the United States.
- [4]
The EUR 800 million raise was set at a final valuation of EUR 6.1 billion, with shares issued to institutional investors, for the Euronext Amsterdam-listed group trading as SWICH.
- [5]
The two-page dismissal notice, filed in the U.S. Bankruptcy Court for the District of Delaware, does not mention a settlement, a payment, or any other consideration for FTX creditors.
- [6]
The trust filed the notice under Federal Rule of Civil Procedure 41(a)(1)(A)(i), a rule that lets a plaintiff end a case without a court order, so no judge had to approve the dismissal.
- [7]
Rule 41(a)(1)(A)(i) allows a plaintiff to end a case by notice, without a court order, before the defendant has filed an answer or a motion for summary judgment.
- [8]
Neither the trust nor SWI has disclosed what, if anything, the estate received in return for the dismissal.
- [9]
The trust sued Genesis Digital, four related U.S. entities and co-founders Rashit Makhat and Marco Krohn on September 23, 2025, as adversary proceeding No. 25-52358, seeking about $1.15 billion.
- [10]
The trust alleged that Sam Bankman-Fried used Alameda Research to buy Genesis Digital shares at inflated prices between August 2021 and April 2022.
- [11]
In January 2026 Genesis Digital moved to dismiss the case, Bloomberg Law reported, arguing that as a Cypriot company headquartered in Dubai it should not have to defend the claims in a U.S. court.
- [12]
The June 15 notice dropped the complaint and all claims against all seven defendants, including co-founders Makhat and Krohn; dismissal with prejudice means the claims cannot be brought again.
- [13]
In an August 25 announcement, SWI said it had completed a controlling stake of more than 70% in Genesis Digital and would rename the company SWI Digital to serve as its U.S. digital infrastructure platform.
- [14]
SWI founder and chief executive Max-Herve George told the Wall Street Journal the company has "zero interest" in bitcoin mining.
ReportedSupportedSource: Max-Herve George, SWI chief executive, to the Wall Street Journal, as reported by cryptotimes.ioView cited source - [15]
George said SWI is selling Genesis Digital's last three small mining sites in Kazakhstan.
ReportedSupportedSource: Max-Herve George, to the Wall Street Journal, as reported by cryptotimes.ioView cited source - [16]
SWI's release does not name the institutional investors to whom the new shares were issued.
- [17]
SWI said the raise takes the equity it has raised since March 2026 to more than EUR 1 billion, including a EUR 260 million private placement in March with its founder and Aliya Fund.
- [18]
The EUR 800 million raise was announced 119 days after the June 15 dismissal and stake announcement.
- [19]
The two rounds SWI names, the EUR 260 million March placement and the EUR 800 million raise, total EUR 1.06 billion.
- [20]
George told the Wall Street Journal that all legal disputes involving FTX and other shareholders have been settled.
ReportedInsufficientSource: Max-Herve George, to the Wall Street Journal, as reported by cryptotimes.io2 sources— create a free account to open themView cited source
Sources
1 independent publisher whose own reporting we read for this story.
- cryptotimes.ioFTX Trust Drops Genesis Digital Lawsuit as SWI Closes $500M Stake
1 article · October 12, 2026
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Topics
- FTX bankruptcy recoveryFollow
- Bankruptcy clawback litigationFollow
- AI Data Center FinancingFollow
Entities
- FTX Recovery TrustFollow
- Genesis DigitalFollow
- SWIFollow
- Max-Hervé GeorgeFollow
- Sam Bankman-FriedFollow
- Alameda ResearchFollow