The Genesis Global and Alameda Research Settlement
A United States court recently approved the settlement terms between Genesis, a digital asset lender, and Alameda Research, a sister company of FTX. The court filing, which took place on October 11, signifies the judicial approval of the agreement reached by both companies during the bankruptcy proceedings.
Under the terms of the settlement, Alameda Research will receive $175 million from Genesis Global. This deal has been deemed “fair and equitable” as it aims to save time and money that would otherwise be spent on litigation. However, some shareholders of FTX and other companies involved in the bankruptcy proceedings have voiced their opposition to the agreement.
“The settlement agreement between Genesis Global and Alameda Research has been approved by the court, allowing the debtors to move forward with its implementation and bring resolution to the bankruptcy proceedings.” – New York Judge Sean Lane
The Implications of the Court’s Decision
The court’s decision grants the debtors the ability to adhere to the terms of the settlement agreement, as approved by Judge Sean Lane. The judge dismissed several claims made by creditors, including six from Alameda Research, three from FTX trading, and an additional six from West Realm Shires Services, a representative of FTX US.
Both FTX and Genesis are currently undergoing bankruptcies as investors pursue the recovery of lost assets and the restructuring of the companies to protect certain assets. The recent settlement between Genesis and Alameda Research has sparked controversy, particularly due to the terms that were struck out.
