A New York bankruptcy judge has approved a settlement between cryptocurrency firms FTX and Genesis Global Trading (GGC), allowing FTX-affiliated Alameda Research to receive $175 million from GGC. The settlement agreement was given the green light by the United States Bankruptcy Court for the Southern District of New York. As part of the agreement, Genesis debtors are authorized to enter into and perform under the settlement and pay the agreed amount to FTX. The judge also expunged multiple claims by FTX debtors against Genesis. This settlement marks a significant reduction from the original amount claimed by FTX debtors, who initially asserted claims totaling around $3.9 billion. Genesis had previously stated that the settlement was fair and equitable and would help the company avoid lengthy litigation. However, FTX creditors expressed dissatisfaction with the settlement and urged the Official Committee of Unsecured Creditors of FTX to contest the agreement. The collapse of FTX in November 2022 had a widespread impact on the cryptocurrency industry, with Genesis being one of the affected companies due to its exposure to FTX. Genesis filed for bankruptcy in January 2023 after losing access to $175 million worth of crypto assets locked away in an FTX trading account. The settlement between Genesis and FTX comes at a time when FTX founder Sam Bankman Fried is facing multiple charges, including fraud and money laundering, in an ongoing trial.

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Information	Details
Geography	North America
Countries
Sentiment	neutral
Relevance Score	1
People	Sam Bankman Fried, Sean Lane
Companies	West Realm Shires Services, Genesis Global Holdco, FTX, Alameda Research, United States Bankruptcy Court for the Southern District of New York, Genesis Global Trading (GGC), Official Committee of Unsecured Creditors of FTX
Currencies	None
Securities	None