Genesis Cryptocurrency Broker has supposedly suspended withdrawals. Bitcoin, the largest cryptocurrency, has remained stable and is currently trading at $26,591, according to data from CoinGecko.
Approval of the Genesis agreement
The move comes after the U.S. Bankruptcy Court for the Southern District of New York approved a settlement agreement between Genesis and the FTX entities. This agreement resolves a dispute in which Genesis will pay $175 million to FTX.
However, this agreement has not been without controversy. Several objections were raised, including by an ad hoc group of Genesis Lenders and Gemini Trust Company.
However, after several hearings and deliberations, the court granted the motion in favor of the settlement, dismissing all objections.
The problems of Genesis
In mid-September, Genesis officially stopped all of its cryptocurrency trading services, a decision stemming from the severe impacts of the Three Arrows Capital and FTX collapses on the company.
As U.Today reported, Genesis initially stopped withdrawals from its digital asset lending unit in November 2022.
Earlier this year, Genesis Trading cut about a third of its staff due to its financial and legal problems.
Genesis’ lending unit filed for bankruptcy in early January.
