The court approved Genesis’ $175 million settlement to FTX, resulting in billions in write-downs Cryptocurrency scrgruppen

A New York bankruptcy judge has approved a settlement between bankrupt cryptocurrency companies FTX and Genesis Global Trading (GGC), allowing FTX’s Alameda Research to receive $175 million from GGC.

The U.S. Bankruptcy Court for the Southern District of New York has greenlit a settlement agreement between FTX and GGC’s parent company Genesis Global Holdco in a lawsuit. Presenter On October 11th.

Following approval, the Genesis Debtors were formally authorized to enter into and execute the Settlement Agreement and pay $175 million to FTX.

Concurrent with approving the settlement amount, New York Bankruptcy Judge Shawn Lane also dismissed several claims filed by FTX’s debtors against Genesis.

According to the filing, the court accepted the withdrawal of a large number of claims, including three claims filed by FTX Trading, six claims filed by Alameda Research, and six claims filed by West Realm Shires Services, which represents FTX US.

The approved settlement represents a significant reduction from the amount originally demanded by FTX’s debtors, combined He confirmed Claims total approximately $3.9 billion as of May 2023. FTX’s claims included approximately $1.8 billion in loan installments that Alameda allegedly made to GGC, $1.6 billion in assets that Genesis debtors allegedly withdrew from FTX and other assets .

Genesis mentioned previously He said The settlement was “fair and equitable” and would allow the company to avoid pursuing “protracted litigation,” the outcome of which would be “inherently uncertain.” On the other hand, FTX’s creditors expressed their dissatisfaction with the settlement and urged FTX’s official committee of unsecured creditors to challenge the agreement in August 2023.

Related: Caroline Ellison 7 presented “alternative” balance sheets to hide Alameda’s exposure to FTX

The FTX exchange collapsed in November 2022, spreading a massive contagion in the cryptocurrency industry. Cryptocurrency lender Genesis was one of many companies affected by the FTX fiasco due to its exposure to FTX, with its derivatives business losing access to $175 million worth of crypto assets locked in a FTX trading account. After halting withdrawals in November 2022, Genesis declared bankruptcy in January 2023.

Genesis’ settlement with FTX comes amid the ongoing trial of FTX founder Sam Bankman Fried, who faces 13 charges such as fraud, money laundering and bribery of officials.

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