Alameda Research, Genesis Global resolve $3.88B claim dispute with $175M agreement News ▸ FTX ▸ Bankruptcy
Alameda Research, Genesis Global resolve $3.88B claim dispute with $175M agreement
The agreement represents a significant drop from the original claim by Alameda Research against Genesis, but both parties have expressed satisfaction with the deal.
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Updated: Aug. 17, 2023 at 4:45 pm UTC
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Alameda Research has agreed to claim $175 million from the estate of Genesis Global, according to an agreement submitted to the court on Aug. 16. This resolves the dispute between the two bankrupt entities over claims against each other.
Massive reduction from initial $3.88 Billion
The agreement represents a significant drop in the original claim by Alameda Research against Genesis. Alameda, which declared bankruptcy in November 2022 along with FTX, had initially brought actions for claims totaling $3.88 billion.
It claimed this includes loan repayments to Alameda and Genesis withdrawals from FTX.
However, Genesis, which filed for bankruptcy in January 2023 when it could no longer meet debt obligations, is also the largest unsecured creditor of FTX. The lender claims it is owed $226 million.
With this agreement that the lawyers initially disclosed in July, FTX will get $175 million and is not obligated to Genesis.
Meanwhile, the deal is still subject to the bankruptcy courts of Delaware and the Southern District of New York to approve the agreement. The two courts are hearing the bankruptcy cases of FTX and Genesis, and the hearing is scheduled for September 11 and September 6, respectively.
Parties say it is the best way forward
The parties appear happy with the agreement judging by what Genesis lawyers disclosed in its filing.
“The Genesis Debtors have determined, in consultation with their advisors, that the Settlement Agreement is fair and equitable, reasonable, and in the best interests of the Genesis Debtors’ estates,” the filing read.
FTX CEO John Ray III also agreed with the deal noting it would save the company the time, money, and other resources required if they were to litigate with Genesis.
This agreement only represents the resolution of one of the many claims both companies face in their respective bankruptcy proceedings.
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Posted In: FTX, Bankruptcy
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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FTX
FTX is a defunct cryptocurrency exchange, currently in bankruptcy proceedings, that was founded by Sam Bankman-Fried and Zixiao “Gary” Wang in May 2019.
Genesis
Genesis is an institutional digital asset markets and a full-service digital currency prime brokerage providing a single point of access for select qualified individuals and global institutional investors.
Digital Currency Group
Digital Currency Group’s mission is to accelerate the development of a better financial system.
John J Ray III is the Chief Restructuring Officer and now-appointed CEO of FTX, a cryptocurrency derivatives exchange.