Odaily Planet Daily News In response to the proposed $175 million settlement agreement between Genesis and FTX, Gemini and other creditors accused Genesis Global Capital of buying votes to "manipulate" the bankruptcy process. (CoinDesk)
In previous news, on August 17, the FTX 2.0 Coalition, an alliance of FTX creditors, stated on Twitter that FTX was seeking a $175 million court settlement with Genesis, exempting $175 million of customer claims and the (almost worthless) Alameda claim. Claims dropped from an initial $3.9 billion to $2 billion, surely the worst deal to date, especially given the DOJ investigations into DCG and Genesis.
Even though Genesis' loan balance is inflated by interest earned on loans to Alameda etc., Genesis' claims are currently higher than FTX's claims.
In 2022, Alameda repaid Genesis with billions of FTX client funds. The crypto assets they hold are directly traceable to FTX customer deposits. The FTX 2.0 Coalition expects the Unsecured Creditors Official Committee (UCC) to oppose this "deal".