Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesCopyBotsEarn
Bankrupt FTX wants to sell $175 million claim against Genesis to aid creditor repayment

Bankrupt FTX wants to sell $175 million claim against Genesis to aid creditor repayment

Crypto SlateCrypto Slate2024/02/02 12:46
By:Oluwapelumi Adejumo

Genesis claims are trading for around 65 cents on the dollar as of Januay ending.

FTX bankruptcy estate intends to sell its $175 million general unsecured claim against the collapsed crypto lender Genesis, according to a Feb. 2 court filing .

FTX proposed to divest these claims through public auctions or private transactions, either in entirety or in parts, with single or multiple purchasers. The generated funds would be used to facilitate debt repayment and also restructure its financial obligations to creditors.

This development aligns with FTX’s recent commitment to not resurrecting the platform, opting to liquidate assets as part of the ongoing efforts to compensate customers affected by its 2022 collapse.

Data from Claims Market showed that over $1 million in customer claims were trading at over 65 cents on the dollar as of the end of January.

FTX creditors have until Feb. 15 to voice objections to this proposed claim sale.

Genesis filed for Chapter 11 bankruptcy protection in January after the failure of FTX triggered mass customer withdrawals on its platform.

Genesis and FTX, initially engaged in substantial reciprocal claims, eventually settled with the failed exchange, holding a $175 million claim against the collapsed lender. Under the settlement agreement , both parties also relinquished other claims held against each other. Genesis Global Capital, the crypto lending arm of Genesis, had previously extended loans exceeding $2.8 billion to Alameda.

Genesis settles SEC lawsuit.

A recent court filing revealed that Genesis reached a $21 million settlement with the U.S. Securities and Exchange Commission (SEC) concerning the now-defunct Gemini Earn investment product.

“The proposed settlement will, among other benefits to the Debtors’ estates, resolve the Civil Action Claim filed by the SEC in these Chapter 11 Cases and eliminate the risks, expenses, and uncertainty associated with protracted litigation against the SEC,” the filing stated.

The filing further explained that the $21 million settlement would be disbursed after Genesis fully pays “all other allowed administrative expense, secured, priority, and general unsecured claims.”

The SEC had alleged that Gemini and Genesis violated U.S. securities laws through the crypto lending program.

Meanwhile, the company is still  embroiled  in a lawsuit filed by the New York Attorney General, which also involves DCG and  Gemini , over allegations of fraud.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!

You may also like

UK faces economic stagnation in Q3 as dominant services sector falters

Share link:In this post: According to reports, the UK economy nearly ground to a halt in Q3 as the services sector slowed down. The 0.1% economic growth in Q3 was below the 0.2% growth projected by economists and the previously recorded 0.5% growth in Q2. The data comes less than a month after chancellor Rachel Reeves increased borrowing and taxes in the budget.

Cryptopolitan2024/11/15 18:11

CME Bitcoin Friday Futures experience notable increase in institutional demand

CME’s Bitcoin Friday Futures weekly contracts have seen a significant uptick in institutional interest, reflecting growing demand for exposure to the digital asset market.Since their launch in late September, over 380,000 CME Bitcoin Friday Futures contracts have traded, reaching a daily average volume of 12,400 contracts.

The Block2024/11/15 16:45

Ethereum ETFs record highest weekly trading volume since launch

This past week, Ethereum ETFs recorded over $1.63 billion of trading volume, up over 44% from the previous week.The following is an excerpt from The Block’s Data and Insights newsletter.

The Block2024/11/15 16:45