Bankrupt FTX and Genesis Global to Settle Dispute in Bankruptcy Cases
Bankrupt crypto exchange FTX and crypto lender Genesis have come to an agreement to settle their disputes within their bankruptcy cases.
The agreement was disclosed in a letter submitted by their legal representatives to the US bankruptcy court for the Southern District of New York on Thursday.
"The Parties have reached an agreement in principle, subject to documentation, regarding a settlement that would resolve, among other things, the claims asserted by the FTX Debtors against the Debtors in these Chapter 11 Cases and the claims asserted by the Genesis Debtors against the FTX Debtors in the FTX Chapter 11 Cases," the letter said.
The letter did not include any further details regarding the settlement.
Genesis emerged as the largest unsecured creditor of FTX following its bankruptcy. Court documents filed in January revealed that FTX owed Genesis $226 million.
Additionally, FTX claimed that Genesis Global owed it $3.9 billion, which was later reduced to $2 billion.
However, Genesis has denied these claims, even trying to throw out the FTX claims "to avoid undue delay in the timing and amount of creditor distributions, and to expeditiously pursue confirmation of a Chapter 11 plan."
In May, FTX filed an application to recover funds totaling $2 billion from Genesis Global, including $1.8 billion in loans and $1.6 billion that Genesis allegedly withdrew from FTX's trading platform before both companies went bankrupt.
The amount also included $273 million in collateral given to Genesis Global and $213 million reportedly taken by the crypto lender's subsidiary.
In November last year, Genesis Global's lending division halted redemptions and new loans following the collapse of FTX.
At the time, the company said the decision was
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