{"id":173170,"date":"2023-10-13T01:12:41","date_gmt":"2023-10-12T19:42:41","guid":{"rendered":"https:\/\/dripp.zone\/news\/?p=173170"},"modified":"2023-10-13T01:12:41","modified_gmt":"2023-10-12T19:42:41","slug":"genesis-halts-withdrawals-amidst-legal-tussle-with-ftx-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/genesis-halts-withdrawals-amidst-legal-tussle-with-ftx-crypto-news\/","title":{"rendered":"Genesis Halts Withdrawals Amidst Legal Tussle with FTX – Crypto News"},"content":{"rendered":"

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Genesis Global Trading (GGC) has come to an agreement with FTX. Consequently, Genesis is slated to pay a massive $175 million to FTX. This move follows a<\/span> lawsuit where FTX<\/span><\/a>, along with affiliate Alameda Research, demanded significant compensation from Genesis. Additionally, rumors are afloat that Genesis has <\/span>temporarily stopped customer withdrawals <\/span><\/a>within its lending branch.\u00a0<\/span><\/p>\n

Court Approves Genesis\u2019s $175M FTX Settlement<\/strong><\/h2>\n

On October 11, the United States Bankruptcy Court for the Southern District of New York gave its nod to the settlement. This decision permits GGC debtors to pay the $175 million to FTX, marking an important phase in the ongoing legal skirmish.<\/span><\/p>\n

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Genesis views this court-endorsed settlement as both \u201cfair and equitable.\u201d They hope to dodge the whirlwind of <\/span>prolonged court battles<\/span><\/a>, the outcomes of which are unknown. However, FTX\u2019s creditors expressed their discontent. They\u2019ve pushed the Official Committee of Unsecured Creditors of FTX to contest this accord.<\/span><\/p>\n

Genesis Faces Fallout from FTX\u2019s Downfall<\/strong><\/h2>\n

GGC\u2019s troubles began with the downfall of FTX in November 2022. The event sent shockwaves throughout the crypto sector. Significantly, Genesis, due to its financial ties with FTX, faced challenges. Its derivatives unit lost access to crypto assets totaling $175 million.<\/span><\/p>\n

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Moreover, Genesis<\/span> halted withdrawals<\/span><\/a> in November 2022. By January 2023, they had filed for bankruptcy. This legal stalemate with FTX is happening simultaneously with FTX founder Sam Bankman Fried\u2019s trial. He\u2019s dealing with serious accusations, including fraud, money laundering, and bribing officials.<\/span><\/p>\n

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Caroline Ellison, the former CEO of Alameda Research, made a critical courtroom disclosure. Under Bankman-Fried\u2019s guidance, she prepared seven different balance sheets before meeting Genesis\u2019s trading and lending co-head. This strategy aimed to hide massive loans on Alameda Research\u2019s records, especially the astonishing $9.9 billion owed to FTX clientele.<\/span><\/p>\n

Read Also:<\/b> CFTC Sues Former Voyager Digital CEO, Stephen Ehrlich<\/span><\/a><\/p>\n

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Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. I write extensively on topics such as blockchain, cryptocurrency, tokens, and more for many publications. My goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good. <\/p>\n<\/p><\/div>\n

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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.<\/p>\n<\/div><\/div>\n<\/p><\/div>\n

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Genesis Global Trading (GGC) has come to an agreement with FTX. Consequently, Genesis is slated to pay a massive $175 million to FTX. This move follows a lawsuit where FTX, along with affiliate Alameda Research, demanded significant compensation from Genesis. Additionally, rumors are afloat that Genesis has temporarily stopped customer withdrawals within its lending branch.\u00a0 […]<\/p>\n","protected":false},"author":2,"featured_media":155240,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[192,29,198,194,195,199,196,193,197,200],"class_list":["post-173170","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-blockchain-business","tag-business","tag-coins","tag-crypto-business","tag-cryptocurrency-business","tag-fiat","tag-metaverse-business","tag-nft-business","tag-token","tag-token-business"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/173170","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=173170"}],"version-history":[{"count":2,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/173170\/revisions"}],"predecessor-version":[{"id":173172,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/173170\/revisions\/173172"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/155240"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=173170"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=173170"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=173170"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}