The agreement represents a significant reduction from Alameda Research’s initial claims against Genesis, but both parties expressed satisfaction with the deal.
Alameda Research has agreed to pay $175 million from the estate of Genesis Global, according to an agreement filed with the court on August 16. This resolves a dispute between the two bankrupt entities arising from claims against each other.
A significant reduction from the original $3.88 billion
The agreement marks a significant drop in Alameda Research’s initial claim against Genesis. Alameda, which declared bankruptcy along with FTX in November 2022, initially filed suit for a total of $3.88 billion.
It claims this includes repaying Alameda’s loan and withdrawing Genesis funds from FTX.
However, Genesis filed for bankruptcy in January 2023 as it could no longer meet its debt obligations and is also FTX’s largest unsecured creditor, with lenders claiming it is owed $226 million.
Under the agreement, which lawyers initially revealed in July, FTX will receive $175 million and have no obligations to Genesis.
Meanwhile, the deal still needs approval from the Delaware and Southern District of New York bankruptcy courts, which are hearing the FTX and Genesis bankruptcy cases, with hearings scheduled for September 11 and September 6, respectively.
All parties say this is the best way forward
From what Genesis’ lawyers disclosed in their filings, both parties appear to be satisfied with the agreement.
“The Genesis Debtors, in consultation with counsel, have determined that the Settlement Agreement is fair, just, reasonable, and in the best interests of the Genesis Debtors’ Estate,” the filing reads.
FTX CEO John Ray III also agreed to the deal, noting that it would save the company time, money, and other resources if it were to pursue litigation with Genesis.
The agreement represents the resolution of just one of many claims facing both companies in their respective bankruptcy proceedings. #Alameda #FTX