The bankrupt cryptocurrency companies FTX and Genesis Global Trading (GGC) reached a $175M settlement. Alameda Research, a subsidiary of FTX, will now get the money. Following approval, Genesis's creditors are now technically permitted to take part in the settlement and pay FTX. In parallel, the court rejected a number of claims made by FTX debtors against Genesis.
Despite getting the go-ahead, this settlement disappoints FTX debtors. The debtors were initially demanding $3.9B — $1.8B in purported loan repayments and $1.6b in allegedly withheld assets by Genesis borrowers.
Genesis claimed that the deal avoids protracted litigation with uncertain results, although FTX creditors expressed their displeasure. The decision was made as Sam Bankman Fried, the founder of FTX, is still being tried on fraud-related charges. Genesis lost access to $175M in crypto assets as a result of FTX's failure in 2022, which caused significant disruption to the crypto market.
