FTX and Genesis Agree on $175 Million Settlement Following $4 Billion Claim
Bankrupt crypto exchange FTX has successfully reached a $175 million settlement with collapsed crypto lender Genesis, following the assertion of a nearly $4 billion claim on behalf of Alameda Research, FTX’s defunct sister company, and trading firm.
In recently filed documents. It’s revealed that Genesis has agreed to make this payment after allegations were made by FTX’s debtors, accusing the crypto lending entity of being a significant contributor to FTX’s fraudulent business model. FTX’s current CEO. John J. Ray III, has expressed his endorsement of the settlement as “fair and equitable”. Deeming the amount reasonable. The agreement is pending approval from judges overseeing each bankruptcy case. Initially seeking to recover about $3.9 billion from Genesis. FTX faced financial turmoil. Leading to the collapse of affiliated companies, including Alameda Research, which was established by FTX’s co-founder Sam Bankman-Fried.
The sudden bankruptcy of the crypto giant in November and subsequent arrest of Bankman-Fried raised allegations of mismanagement, fraud, and tampering with witnesses. With Bankman-Fried’s trial set to commence in October, he confronts multiple criminal charges, including the alleged misuse of customer funds for political contributions.
Clever Robot News Desk 18th August 2023
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