Genesis Halts Withdrawals After Court Orders to Pay $175M to FTX

#Genesis will provide #FTX $175 million.

The settlement between the troubled #cryptocurrency startups FTX and GGC was approved on October 11 by the Southern District of New York of the United States Bankruptcy Court. The $175 million settlement sum with FTX may be discharged by Genesis debtors under the terms of this agreement. so opening a crucial chapter in the current legal conflict.

Genesis considers this court-approved settlement to be "fair and equitable". It seeks to avoid the "protracted litigation" whose result is still "inherently uncertain." Creditors of FTX, on the other hand, expressed dissatisfaction and urged the Official Committee of Unsecured Creditors of FTX to contest this deal.

The FTX crash in November 2022, which sent a financial shockwave through the cryptocurrency sector, serves as the setting for this courtroom drama. Due to its financial ties to FTX, Genesis found itself in a bind. It lost access to $175 million worth of cryptocurrency assets for its #derivatives business.