A New York bankruptcy judge has approved a settlement between cryptocurrency firms FTX and Genesis Global Trading (GGC), allowing FTX-affiliated Alameda Research to receive $175 million from GGC. The settlement agreement was given the green light by the United States Bankruptcy Court for the Southern District of New York. As part of the agreement, Genesis debtors are authorized to pay $175 million to FTX. The court has also dismissed multiple claims by FTX against Genesis, bringing the case to a close.
Reduction from original claims
The approved settlement represents a significant reduction from the amount initially claimed by FTX debtors. In May 2023, FTX debtors asserted claims totaling around $3.9 billion. This included $1.8 billion in alleged loan repayments made by Alameda to GGC, $1.6 billion of assets allegedly withdrawn by Genesis debtors from FTX, and other assets. However, the settlement agreement has resolved these claims and brought the case to a resolution.
Discontent and ongoing trial
While Genesis has expressed satisfaction with the settlement agreement, FTX creditors have expressed discontent and urged the Official Committee of Unsecured Creditors of FTX to contest the agreement. This disagreement highlights the complexity of the case and the differing perspectives of the parties involved. In addition, the settlement comes amid the ongoing trial of FTX founder Sam Bankman Fried, who is facing charges including fraud, money laundering, and bribing officials.
