FTX 2.0 Coalition: FTX Seeks Court to Resolve Genesis Claims Dispute and Release $175 Million in Client Claims

Odaily Planet Daily News FTX Creditor Alliance FTX 2.0 Coalition stated on Twitter that FTX seeks the court to resolve the Genesis $175 million claim dispute, exempt $175 million customer claims and (almost worthless) Alameda claims. Claims dropped from an initial $3.9 billion to $2 billion, surely the worst deal to date, especially given the DOJ investigations into DCG and Genesis. Even though Genesis' loan balance is inflated by interest earned on loans to Alameda etc., Genesis' claims are currently higher than FTX's claims. In 2022, Alameda repaid Genesis with billions of FTX client funds. The crypto assets they hold are directly traceable to FTX customer deposits. We expect the UCC to object to this "deal". Prior to the news on August 5, according to Bloomberg citing sources, the New York Attorney General Letitia James’ office requested information on former executives of Genesis, a cryptocurrency lending company. and the U.S. Securities and Exchange Commission (SEC) have opened an investigation and sought to interview potential witnesses for Genesis and its parent company, DCG. A DCG spokesman said the company was assisting regulators and investigators upon request.