Crypto
FTX Strikes a Deal with Genesis for the Bankruptcy Claim of $175 Million
The contract claims of Genesis against FTX, denote a massive decrease from the approximately $4B originally sought by FTX.
Alameda Research of FTX (the now-defunct crypto exchange) can now claim $175M worth from Genesis (a bankrupt crypto entity), as per a legal contract filed on Wednesday among the court filings. The contract, which additionally surrenders the parallel claims of Genesis against FTX, denotes a huge decrease from the approximately $4B originally sought by FTX.
FTX and Genesis Initiate a Contract for Nearly $175 Million Bankruptcy Claim
Attorneys expect it will assist both entities to settle the affairs and give funds back to the clients following the bankruptcy filing by Genesis Global Capital back in January. Genesis belongs to the Digital Currency Group (DCG). The lawyers from Genesis disclosed that the respective settlement will provide a significant smoothness in the development concerning the validation of the Chapter 11 reorganization plan of the Genesis debtors.
In this way, the lawyers added, they will not even require paying charges of prolonged litigation. Simultaneous to the court filing, John J. Ray III acknowledged the fairness of the deal. Moreover, he said that it denoted the best interests of FTX in line with the legal uncertainties dealing with the claims.
Also Read: FTX Is All Set To Restart Bankrupt Digital Currency Exchange
Because of the crypto winter, several crypto entities (often having complicated financial relationships) collapsed. On the other hand, the original claims of FTX against Genesis were equal to $3.88B, taking into account loan repayments carried out by Alameda Research (the hedge fund branch of the crypto exchange) as well as the assets that Genesis redeemed from FTX.
Genesis Global Capital Stands as the Biggest Secured Creditor of FTX, Owing $226 Million
Additionally, Genesis Global Capital counts as the biggest unsecured creditor of FTX owing $226M according to the court filings. In July this year, lawyers declared that they had carried out an agreement in principle however complete details were not provided.
