• Alameda Research, an offshoot of the former exchange FTX, has reached a settlement with Genesis for $175 million.
• The initial claim was set at $4 billion, but was later reduced to $2 billion.
• The settlement is intended to streamline the process of concluding the companies’ dealings and to expedite customer fund returns.
Alameda Research Settles Claim with Genesis
Alameda Research, the trading arm of the defunct exchange FTX, has settled a claim for $175 million with the bankrupt crypto firm Genesis according to recent court filings. This amount is a marked drop from FTX’s original demand of $4 billion.
Purpose of Settlement
The settlement is meant to facilitate the “Genesis Debtors’ chapter 11 plan of reorganization” and eliminates potential expenses and time associated with protracted litigation. Additionally, it will help return funds to customers who were affected by Genesis’ bankruptcy in January this year.
FTX Agrees To Terms
John J Ray III, CEO of FTX, agreed to terms in a concurrent submission stating that considering the ambiguities surrounding legal claims this settlement aligns with FTX’s best interests.
This situation comes as part of what is known as “crypto winter”, where several crypto firms have folded due to intricate financial interweaving between them. Legal professionals are working hard to disentangle these relationships amidst simultaneous bankruptcy hearings.
It appears that both parties have come to an agreement on this dispute and that customers may soon receive their funds back from Genesis if all goes well in court proceedings.