A bankruptcy court in the United States has approved the settlement agreement between digital asset lender Genesis and Alameda Research, a sister company of FTX. Under the agreement, Alameda Research will receive $175 million from Genesis Global, which has been deemed fair and equitable.
The court’s decision allows debtors to proceed with the approved settlement terms. Several claims by creditors, including those from Alameda Research, FTX trading, and West Realm Shires Services, have been dismissed by the judge. Both FTX and Genesis are currently undergoing bankruptcy proceedings as they attempt to recover lost assets and restructure their operations. The settlement comes amidst the ongoing trial of former FTX CEO Sam Bankman-Fried, who is accused of diverting investor assets.
FTX creditors have expressed dissatisfaction with the settlement, demanding nearly $4 billion in assets and loan repayments. Other groups have also criticized the settlement, alleging manipulation of the voting process and a perversion of the bankruptcy proceedings.