FTX’s Alameda Research Can Claim $175 Million from Genesis Estate
FTX’s Alameda Research has reached a legal deal that allows them to make a $175 million claim from the bankrupt estate of crypto company Genesis. This deal also waives Genesis’ parallel claims against FTX. The reduction from the original $4 billion claim is expected to help both companies wind up their affairs and return funds to customers. Genesis Global Capital filed for bankruptcy in January, and both Genesis and CoinDesk belong to the Digital Currency Group. The settlement is seen as a way to avoid extended litigation and facilitate the confirmation of Genesis Debtors’ chapter 11 plan of reorganization.
Key Points:
- FTX’s Alameda Research can claim $175 million from Genesis’ bankrupt estate.
- The deal also waives Genesis’ parallel claims against FTX.
- The reduction from the original claim of $4 billion is significant.
- The settlement is expected to help wind up affairs and return funds to customers.
- The confirmation of Genesis Debtors’ chapter 11 plan of reorganization is a primary goal.
Hot Take:
The reduction in FTX’s claim from $4 billion to $175 million is a significant development in the bankruptcy proceedings between FTX and Genesis. While it is a substantial drop, it is still a substantial amount. This settlement is a positive step towards resolving the complex financial interrelationships between crypto companies and returning funds to affected parties. It shows the willingness of both parties to find a fair resolution and avoid prolonged litigation. The outcome of the hearings in September will determine the final approval of the deal and provide further clarity on the path forward for both companies.
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