Genesis execs receive discounted FTX tokens before public launch

People familiar with the matter have revealed that some of the executives at the bankrupt crypto lender Genesis Global Capital have received discounts on FTX’s native token, FTT, and serum (SRM), which was also launched with the help of the collapsed exchange and its hedge fund, Alameda Research.

According to Financial Times (FT) reporter Kadhim Shubber, Genesis executives were offered FTT and SRM before the assets were publicly launched. 

The major crypto lender filed for Chapter 11 bankruptcy protection in January 2023. According to the report, one of the leading causes of Genesis’ collapse was exposure to Sam Bankman-Fried’s exchange and Three Arrows Capital (3AC) — both companies went bankrupt last year.

People familiar with the matter told FT that some of the executives declined to invest in FTT, but after witnessing its success, they had second thoughts. FTX had another opportunity for them, the Solana-based Serum project, per the report.

According to FT, a former Genesis executive added that their “only reason” for investing in SRM was neglecting FTT. 

Moreover, the co-founder of 507 Capital, Thomas Braziel, told FT that Bankman-Fried cared for people in unique ways.

“He really took care of people who he thought were important to him . . . He was doing a good job of keeping everybody’s bread buttered.”

Thomas Braziel, the co-founder of 507 Capital