• FTX and Genesis have agreed to a settlement in their bankruptcy case, resolving claims that had been made between the two companies.
• The agreement will resolve FTX’s claims against the debtors of Genesis and vice versa.
• Additionally, it would rescind any ongoing motions pertaining to such claims.
FTX & Genesis Reach In-Principle Agreement
FTX and Genesis, both of which are bankrupt, have agreed to an in-principle agreement for settling their respective claims against each other. This agreement was announced by legal representatives of both companies in a letter sent to Bankruptcy Judge Sean Lane on July 27th.
FTX is an defunct cryptocurrency exchange while Genesis is the largest unsecured creditor of FTX. The two companies were trying to recover funds for creditors under court supervision when they reached this agreement.
Details Of The Agreement
The agreement is said to put an end to FTX’s claims against the debtors of Genesis and vice versa along with rescinding any ongoing motions pertaining to such claims. Both sides intend to document and request court approval of the settlement as soon as possible.
Previous Dispute Between Companies
FTX previously asserted that Genesis owed them up to $4 billion; but this amount was decreased by FTX in a letter sent earlier this month to Judge Lane where they stated that the sum was now $2 billion instead. Meanwhile, Genesis filed for Chapter 11 bankruptcy protection in January following Three Arrows Capital’s failure and were estimated to have zero claims in June; however, with this recent development it appears that FTX debtors‘ claims and objections have been resolved.
All things considered, it seems like FTX and Genesis have come together on an amicable solution regarding their bankruptcy case which should bring some relief for all parties involved as well as potentially enable FTX operations once more soon enough.