FTX hopes to sell $175 million in debt for Genesis to repay its debts

According to court documents dated February 2nd, FTX bankruptcy estate plans to sell its $175 million unsecured claim against the collapsed cryptocurrency lending firm Genesis. FTX proposes to divest these claims in whole or in part through public auction or private transactions with one or multiple buyers. The generated funds will be used to facilitate debt repayment and restructure its financial obligations towards creditors. This development aligns with FTX's recent commitment to not recover the platform, opting for liquidation of assets as part of ongoing efforts to compensate customers affected by the 2022 collapse. Data from the claims market shows that as of the end of January, customer claims exceeding $1 million have traded at prices over 65 cents on the dollar. FTX creditors must file objections to this proposed claim sale by February 15th. Genesis and FTX initially engaged in extensive mutual claims but ultimately reached a settlement with the collapsed exchange, presenting a $175 million claim against the defaulted lender. As per the settlement agreement, both parties also waived any other claims against each other. Genesis Global Capital, Genesis' cryptocurrency lending division, had previously provided loans exceeding $2.8 billion to Alameda.