FTX and Genesis settle $175 million payment to Alameda Research

FTX and Genesis have reached an agreement to pay Alameda Research the remaining $175 million. This will set the stage for the confirmation of the crypto-lending platform’s restructuring plan, The Block.

The agreements will eliminate the risks, costs and uncertainties associated with the protracted litigation between the FTX and Genesis debtors.

They also entail the platform waiving all other claims against the exchange, according to the statement.

In May 2023, FTX lawyers filed suit against Genesis seeking that it return $3.9 billion. The claim amount was later reduced to $2 billion.

According to court filings, the lending platform is among the exchange’s largest unsecured creditors and their affiliates, with a debt of $226 million.

In June, the debtors, FTX, challenged the latest valuation, arguing that nothing was owed to the firm. According to Cointelegraph, such claims and objections apparently were resolved within the framework of a global settlement.

A month later it emerged that FTX and Genesis in-principle agreement to settle the claims had been reached.

In June, the exchange’s current management team said it had returned liquid assets totaling about $7 billion.