The FTX Recovery Trust dismissed its $1.15 billion clawback suit against Genesis Digital with prejudice on June 15, the same day SWI said it had closed a $500 million stake in the company.
SWI announced the €800 million capital increase on October 12 at a €6.1 billion final valuation. It said the proceeds will fund data center and AI compute capacity in Europe and the United States. A clawback suit is an attempt by a bankruptcy estate to recover money that left a company before it failed.
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. The trust filed it under a rule that lets a plaintiff end a case without a court order, so no judge had to approve the dismissal. Neither the trust nor SWI has disclosed what, if anything, the estate received in return.
The €800 Million Raise
The Euronext Amsterdam-listed group, which trades under the ticker SWICH, said the shares were issued to institutional investors. The release does not name the investors. SWI said the raise takes the equity it has raised since March 2026 to more than €1 billion, including a €260 million private placement in March with its founder and Aliya Fund.
SWI said the proceeds will go toward power infrastructure, compute deployments, and its development pipeline. In an earlier announcement on August 25, 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.
Max-Hervé George, SWI’s founder and chief executive, told the Wall Street Journal the company has “zero interest” in bitcoin mining. He said SWI is selling Genesis Digital’s last three small mining sites in Kazakhstan.
FTX’s $1.15 Billion Claim Against Genesis Digital
The FTX Recovery Trust, which collects and distributes money for creditors of the collapsed exchange, sued Genesis Digital, four related U.S. entities, and the company’s co-founders, Rashit Makhat and Marco Krohn, on September 23, 2025. It filed the case in the U.S. Bankruptcy Court for the District of Delaware as adversary proceeding No. 25-52358.
The trust sought about $1.15 billion. It alleged that Sam Bankman-Fried used Alameda Research to buy Genesis Digital shares at inflated prices between August 2021 and April 2022. Alameda was the trading firm Bankman-Fried ran alongside FTX.
In January 2026, Genesis Digital moved to dismiss the case, Bloomberg Law reported. The company argued that as a Cypriot company headquartered in Dubai, it should not have to defend the claims in a U.S. court.
The June 15 Dismissal and SWI’s Stake
On June 15, the trust filed a voluntary notice of dismissal with prejudice, dropping the complaint and all claims against all seven defendants. The defendants were Genesis Digital Assets Limited, GDA US Inc., DDH (North America) Inc., DDH-Cholla, LLC, DDH-OK-1, LLC, Makhat and Krohn. Dismissal with prejudice means the claims cannot be brought again.
The trust filed the notice under Federal Rule of Civil Procedure 41(a)(1)(A)(i). That rule 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.
The two-page notice does not mention a settlement, a payment, or any other consideration. Because the trust dismissed the case by notice, no court approval of the dismissal was required. George told the Wall Street Journal that all legal disputes involving FTX and other shareholders have been settled. Neither the trust nor SWI has disclosed any terms.
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