FTX petitions court to sell off $175M claim against DCG’s Genesis
The bankrupt firms whittled the sum down from a much larger debt to avoid the delay and uncertainty of litigation.
FTX filed a motion in a Delaware court on Feb. 1 to sell its claim for $175 million against bankrupt digital financial services firm Genesis Global Capital. The claim was made by the bankrupt cryptocurrency exchange’s associated hedge fund, Alameda Research.
If approved, FTX may sell the claim in whole or in part and at different times to take advantage of the best conditions. Claims against Genesis are currently selling for 65% of their face value, significantly higher than the 38% Alameda Research claims are fetching.
The motion asks for approval of a sales procedure to apply to all sales to “alleviate the cost and delay of filing a separate motion for each proposed Sale.” The sale price must amount to at least 95% of the “the highest price quoted by one or more leading market-makers for general unsecured claims of GGC on a reference date” within three days of the sale date. The proposed sale order stated:
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