Alameda Research Receives $175 Million Settlement from Genesis
Alameda Research, an affiliate of FTX, has been awarded a $175 million settlement by the United States Bankruptcy Court for the Southern District of New York. This settlement agreement between Alameda and Genesis Global Holdco comes amidst the ongoing trial of Sam Bankman-Fried, which has shed light on financial misconduct and the misuse of customer funds at FTX and Alameda.
Genesis to Pay $175M to FTX
Genesis has been authorized by the court to enter into a settlement agreement with FTX and pay $175 million. Judge Sean Lane has also dismissed multiple claims made by FTX debtors against Genesis. The approved settlement is significantly lower than the original claim of $3.9 billion made by FTX debtors in May 2023.
The settlement includes the withdrawal of various claims, including those made by FTX Trading, Alameda Research, and West Realm Shires Services. These claims involved alleged loan repayments and asset withdrawals.
FTX’s Collapse Sparks Industry Impact
The collapse of FTX in November 2022 had far-reaching consequences for the cryptocurrency industry. Genesis, a crypto lending firm, suffered significant losses as its derivatives business lost access to around $175 million worth of crypto assets held in an FTX trading account. Following this loss, Genesis filed for bankruptcy in January 2023.
A report published by FTX debtors highlighted management mistakes and security flaws within the organization. It revealed a lack of proper organizational structure, management, governance, and security measures.
Hot Take: Alameda Research Receives $175 Million Settlement from Genesis
Alameda Research, affiliated with FTX, has been awarded a $175 million settlement by the United States Bankruptcy Court. This settlement agreement comes amid the ongoing trial of Sam Bankman-Fried, which has exposed financial misconduct and the misuse of customer funds at FTX and Alameda.
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