Genesis files proposed court order over $175 million claims settlement with FTX

Odaily Planet Daily News Genesis Global Capital (GGC) has filed a proposed order in the Federal Bankruptcy Court for the Southern District of New York on Thursday to enforce the company’s settlement agreement with FTX. According to the settlement agreement, FTX has the right to file a bankruptcy claim of US$175 million against Genesis based on the loan it previously provided to FTX subsidiary Alameda Research. In exchange, FTX agreed to withdraw several other claims against Genesis, which could total more than $1 billion. This follows a decision by Judge Sean H. Lane on October 6 approving an agreement between Genesis and FTX to resolve claims between the two companies. Genesis initially sought approval for the agreement in August. However, major creditors Gemini Trust and an ad hoc group of Genesis creditors objected to the terms of the settlement. Following an evidentiary hearing in September, Judge Lane dismissed those objections in a decision on October 6. He believes the agreement is reasonable given the risk of litigation and the potential for greater losses if FTX’s claims remain unresolved. The proposed order still requires Judge Lane's approval. A hearing is scheduled for October 18, giving remaining opponents a last chance to argue the terms of the settlement before the agreement is implemented. (Cryptoslate) According to previous news, the FTX creditor alliance FTX 2.0 Coalition posted on the Claim. The claim dropped to $2 billion from the original $3.9 billion, which is certainly the worst deal yet, especially considering the Justice Department investigation into DCG and Genesis. Even if Genesis' loan balances are inflated by interest earned on loans to Alameda and others, Genesis' claims are currently higher than FTX's claims. In 2022, Alameda repaid Genesis with billions of FTX customer funds.