FTX acquired a 20% ownership stake in Genesis Digital Assets prior to its bankruptcy filing in November 2022, according to CoinTelegraph. This move highlighted FTX's strategy to expand its presence in the crypto mining sector before its collapse.
The acquisition took place shortly before FTX's financial troubles came to light, underscoring the rapid shifts within the crypto market during that period. Genesis Digital Assets, known for its cryptocurrency mining operations, became partially owned by the now-defunct exchange.
For Japanese investors, this development serves as a reminder of the risks associated with crypto market volatility and the importance of due diligence when considering exposure to firms connected with distressed entities.