Genesis, FTX reach settlement; Alameda to have $175 million unsecured claim

By Sarah Lizee

Olympia, Wash., Aug. 17 – Genesis Global Holdco, LLC is seeking approval of a settlement with FTX Trading Ltd., through which FTX debtor Alameda Research Ltd. will receive a $175 million general unsecured claim against Genesis, according to a motion filed Thursday with the U.S. Bankruptcy Court for the Southern District of New York.

As previously reported, the FTX debtors were originally seeking to claw back $3.9 billion from the Genesis debtors.

Genesis said the settlement will resolve all claims asserted or held by the FTX debtors against Genesis, and will smooth the path to confirmation of Genesis’ Chapter 11 plan of reorganization.

Through the settlement, Alameda will be entitled to receive pro rata distributions with all other allowed general unsecured claims in Genesis’ plan.

The FTX and Genesis debtors have also agreed to not object to each other’s plans.

Genesis Global is a New York-based cryptocurrency lender. The company filed bankruptcy on Jan. 19, 2023 under Chapter 11 case number 23-10063. FTX has headquarters in the Bahamas and filed Chapter 11 bankruptcy on Nov. 11, 2022 under case number 22-11068.

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