(Reuters) – FTX-affiliated cryptocurrency trading firm Alameda Research was granted a $175 million unsecured claim on the estate of bankrupt crypto lender Genesis Global Capital, according to a court filing dated Wednesday.
The settlement marks a significant reduction from the nearly $3.9 billion claim that FTX, which is also bankrupt, had asserted earlier this year.
Genesis said the settlement was “fair and equitable” and would allow the company to avoid pursuing “protracted litigation,” the outcome of which would be “inherently uncertain.”
Once-prominent digital asset exchange FTX and lender Genesis Global are two of several crypto firms that went belly up after a turbulent 2022 hit investor sentiment for bitcoin and other crypto tokens.
FTX founder Sam Bankman-Fried has been charged with carrying out a “fraud of epic proportions.” His bail was revoked earlier this month by a U.S judge, who found probable cause that he had tampered with witnesses at least twice.
FTX has previously said Genesis was a primary “feeder fund” for Alameda, loaning it crypto assets that it used for further loans and investments.
As part of the settlement, the companies also agreed to release all claims against each other.
(Reporting by Jaiveer Singh Shekhawat in Bengaluru and Dietrich Knauth in New York; Editing by Varun H K)
