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Genesis, FTX Strike Deal for $175M Bankruptcy Claim
Though a sharp drop from the $4 billion originally claimed, lawyers hope it will let them get on with winding up estates.
Updated Aug 17, 2023, 6:15 p.m. Published Aug 17, 2023, 11:50 a.m.
FTX’s Alameda Research can make a claim worth $175 million from the estate of similarly bankrupt crypto company Genesis, according to a legal deal submitted in Wednesday court filings.
The deal, which also waives Genesis' parallel claims against FTX, represents a significant reduction from the nearly $4 billion FTX originally sought.
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Lawyers hope it will help the companies wind up affairs and return funds to customers, after lender Genesis Global Capital filed for bankruptcy in January. Genesis and CoinDesk both belong to the Digital Currency Group.
“The settlement will, among other things, significantly smooth the path to confirmation of the Genesis Debtors’ chapter 11 plan of reorganization” without the cost of extended litigation, a court filing made by Genesis’ lawyers said.
In a parallel court filing, FTX’s Chief Executive Officer John J. Ray III agreed the deal was fair, saying it represented FTX’s best interests given legal uncertainties about the claims.
The crypto winter has seen the collapse of multiple crypto companies which often had complex financial interrelationships, which lawyers are now attempting to unpick in parallel bankruptcy proceedings.
FTX’s original claims against Genesis amounted to $3.88 billion, including loan repayments made by hedge fund arm Alameda Research and assets withdrawn by Genesis from the FTX exchange in the run up to its November bankruptcy.
In the other direction, Genesis Global Capital is FTX’s largest unsecured creditor, with court filings citing $226 million owed.
In July, lawyers announced they’d reached an agreement in principle but did not release full details. The deal has now been submitted to the judges administering each company for approval, with hearings set for September 6 and 13.
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- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
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The White House has shut down proposals, and lawmakers are circulating the Democrats' asks in what had been a close negotiation, revealing 11th-hour pressure.
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- Democrats shared a response to Republicans outlining their continuing priorities for a crypto market structure bill, which they said was intended to "reach an agreement and proceed towards a mark-up."
- The document laid out concerns with financial stability, market integrity and public officials' ability to trade and profit off of crypto, echoing concerns laid out in a framework Democrats shared in September.
- The Senate is running out of time in the Congressional calendar to hold a markup hearing — a key step toward progressing the bill — before 2025 ends.
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