A New York bankruptcy judge has approved a settlement between bankrupt cryptocurrency firms FTX and Genesis Global Trading (GGC), allowing FTX-affiliated Alameda Research to receive $175 million from GGC.
The United States Bankruptcy Court for the Southern District of New York gave the green light to the settlement agreement between FTX and GGC’s parent company Genesis Global Holdings in a filing submitted on Oct. 11.
After approval, Genesis debtors are officially authorized to enter into and perform under the settlement agreement and pay $175 million to FTX.
In conjunction with approving the settlement amount, New York bankruptcy Judge Sean Lane has also expunged multiple claims by the FTX debtors against Genesis.
According to the filing, the court has accepted the withdrawal of a large number of claims, including three claims by FTX Trading, six claims by Alameda Research, and six claims by West Realm Shires Services, which represents FTX US.
The approved settlement marks a significant reduction from the amount originally claimed by FTX debtors, who collectively asserted claims totaling around $3.9 billion in May 2023. The FTX claims included roughly $1.8 billion in loan repayments allegedly made by Alameda to GGC, $1.6 billion of assets allegedly withdrawn by the Genesis debtors from FTX and other assets.
Genesis previously reportedly 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.” On the other hand, FTX creditors expressed discontent over the settlement and urged the Official Committee of Unsecured Creditors of FTX to contest the agreement in August 2023.
Related: Caroline Ellison provided 7 ‘alternative’ balance sheets hiding Alameda’s exposure to FTX
The FTX exchange collapsed in November 2022, triggering a massive contagion in the cryptocurrency industry. Crypto lending firm Genesis was one of many companies affected by the failure of FTX due to its exposure to FTX, with its derivatives business losing access to $175 million worth of crypto assets locked away in an FTX trading account. After halting withdrawals in November 2022, Genesis filed for bankruptcy in January 2023.
Genesis’ settlement with FTX comes amid the ongoing trial of FTX founder Sam Bankman Fried, who faces 13 charges like fraud, money laundering and bribing officials.
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The business secretary has told Sky News he would not bring a Chinese company into the “sensitive” steel sector again – after the government was forced to take control of British Steel. Urgent legislation rushed through the House of Commons and House of Lords on Saturday gave ministers the power to instruct British Steel – owned by Chinese company Jingye – to keep the plant open. The Steel Industry (Special Measures) Bill essentially allows the government to take control of British Steel “using force if necessary”, order materials for steelmaking and instruct that workers be paid. It also authorises a jail sentence of up to two years for anyone breaching this law. Emergency bill becomes law – follow the latest reaction here Jonathan Reynolds told Sunday Morning With Trevor Phillips that he would not “personally bring a Chinese company into our steel sector” again, describing steel as a “sensitive area” in the UK. The business secretary agreed there is now a high trust bar for Chinese companies to be involved in the UK economy. He said: “I think steel is a very sensitive area. I don’t know… the Boris Johnson government when they did this, what exactly the situation was. But I think it’s a sensitive area.” Jingye stepped in with a deal to buy British Steel’s Scunthorpe plant out of insolvency in 2020, when Mr Johnson was prime minister. But the company recently cancelled orders for supplies of raw materials needed to keep blast furnaces running at the site – the last in the UK capable of producing virgin steel. This threw the future of the steel industry into question, and ultimately led to MPs and peers being recalled from parliamentary recess to take part in a rare Saturday sitting when negotiations with Jingye appeared to break down. An emergency bill to save the plant became law later that day. Public ownership currently ‘likely option’ It stops short of full nationalisation of British Steel, but Reynolds told Sky News that public ownership remains the “likely option” for the future. He said: “Well that remains an option. And to be frank, as I said to parliament yesterday, it is perhaps at this stage the likely option.” Read more: However, the minister said he believes there is “potential” for a commercial private sector partner. He said: “That is my preference, but I feel we’ve got to find a bridge to that. The kind of investments required for the transition to new steel technology, whichever technology that is, it’s a lot of money, a lot of capital.” Andrew Griffith, the shadow business secretary, said the government’s emergency bill amounts to a “botched nationalisation”. He told Sky News the Conservatives supported the “least worst” option in the Commons on Saturday. “There’s clearly still more work to do because the taxpayer is now picking up the bills for a business that is still owned by its Chinese owner,” the Tory frontbencher said. “I hope the government will very quickly come back and clarify that situation.” Anti-corruption authorities in Bangladesh have issued a warrant for the arrest of British Labour MP Tulip Siddiq. Bangladesh’s Anti-Corruption Commission (ACC) sought the warrant over allegations Ms Siddiq received a 7,200sq ft plot of land in the country’s capital, Dhaka. Ms Siddiq’s lawyers have told Sky News the allegations are “completely false”, adding there was “no basis at all for any charges to be made against her”. They said there was “absolutely no truth” behind the allegations regarding the plot of land. The MP resigned as a Treasury minister earlier this year following an investigation by the prime minister’s ethics adviser into her links to her aunt Sheikh Hasina’s regime, which was overthrown in Bangladesh last year. Earlier this month, Ms Siddiq told Sky News her lawyers were “ready” to handle any formal questions about allegations of corruption in Bangladesh. Please use Chrome browser for a more accessible video player Tulip Siddiq’s lawyers ‘are ready’ In her first public comments since leaving government, Ms Siddiq said “there’s been allegations for months on end and no one has contacted me”. Last month, the interim leader of Bangladesh told Sky News the MP had “wealth left behind” in the country “and should be made responsible”. Lawyers acting for Ms Siddiq wrote to the Bangladeshi Anti Corruption Commission (ACC) several weeks ago saying the allegations were “false and vexatious”. The allegations surrounding Ms Siddiq are focused on links to her aunt Ms Hasina – who served as the prime minister of Bangladesh for 20 years. Ms Hasina was forced to flee the country in August following weeks of deadly protests. She is accused of becoming an autocrat, with politically-motivated arrests and other abuses allegedly happening on her watch. Ms Hasina claims it is all a political witch hunt. Ms Siddiq’s lawyer said in a statement that she “has not been contacted by the ACC or any authorities in Bangladesh”. “The ACC has made various allegations against Ms Siddiq through the media in the last few months,” they said. “The allegations are completely false and have been dealt with in writing by Ms Siddiq’s lawyers. The ACC has not responded to Ms Siddiq or put any allegations to her directly or through her lawyers. “Ms Siddiq knows nothing about a hearing in Dhaka relating to her and she has no knowledge of any arrest warrant that is said to have been issued. “To be clear, there is no basis at all for any charges to be made against her, and there is absolutely no truth in any allegation that she received a plot of land in Dhaka through illegal means. “She has never had a plot of land in Bangladesh, and she has never influenced any allocation of plots of land to her family members or anyone else. “No evidence has been provided by the ACC to support this or any other allegation made against Ms Siddiq, and it is clear to us that the charges are politically motivated.” Senator Tim Scott, the chairman of the US Senate Committee on Banking, Housing, and Urban Affairs, recently said that he expects a crypto market bill to be passed into law by August 2025. The chairman also noted the Senate Banking Committee’s advancement of the GENIUS Act, a comprehensive stablecoin regulatory bill, in March 2025, as evidence that the committee prioritizes crypto policy. In a statement to Fox News, Scott said: “We must innovate before we regulate — allowing innovation in the digital asset space to happen here at home is critical to American economic dominance across the globe.” Scott’s timeline for a crypto market structure bill lines up with expectations from Kristin Smith, CEO of the crypto industry advocacy group Blockchain Association, of market structure and stablecoin legislation being passed into law by August. The Trump administration has emphasized that comprehensive crypto regulations are central to its plans for protecting the value of the US dollar and establishing the country as a global leader in digital assets by attracting investment into US-based crypto firms. Senator Tim Scott highlights the Senate Banking Committee’s goals and accomplishments in 2025. Source: Fox News Related: Atkins becomes next SEC chair: What’s next for the crypto industry US lawmakers and officials expect clear crypto policies to be established and signed into law sometime in 2025 with bipartisan support from Congress. Speaking at the Digital Assets Summit in New York City, on March 18, Democrat Representative Ro Khanna said he expects both the market structure and stablecoin bills to pass this year. The Democrat lawmaker added that there are about 70-80 other representatives in the party who understand the importance of passing clear digital asset regulations in the United States. Treasury Secretary Scott Bessent, pictured left, President Donald Trump in the center, and crypto czar David Sacks, pictured right, at the White House Crypto Summit. Source: The White House Khanna emphasized that fellow Democrats support dollar-pegged stablecoins due to the role of dollar tokens in expanding demand for the US dollar worldwide through the internet. Bo Hines, the executive director of the President’s Council of Advisers on Digital Assets, also spoke at the conference and predicted that stablecoin legislation would be passed into law within 60 days. Hines highlighted that establishing US dominance in the digital asset space is a goal with widespread bipartisan support in Washington DC. Magazine: How crypto laws are changing across the world in 2025
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British Steel’s Scunthorpe plant. Pic: Reuters
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Tulip Siddiq with Sheikh Hasina in 2009. Pic: Reuters
Support for comprehensive crypto regulations is bipartisan
