FTX, a bankrupt crypto exchange, and Genesis, a crypto lender, have taken a significant step towards resolving their claims in the ongoing bankruptcy case.
On July 27, both companies’ legal counsels communicated that they had reached an agreement in principle to settle the dispute, as reported to bankruptcy Judge Sean Lane.
The details of the settlement were not disclosed in the letter, but it aims to address the claims brought by FTX against Genesis debtors and vice versa.
Additionally, the agreement would withdraw any pending motions related to these claims. Both parties intend to promptly document the settlement and seek court approval.
In order to finalize the terms of the agreement, FTX and Genesis have requested the court to adjourn upcoming deadlines for current motions and due briefs.
Previously, FTX had claimed that Genesis owed them as much as $4 billion, but this amount was later reduced to $2 billion in a letter addressed to Judge Lane.
Genesis had filed for Chapter 11 bankruptcy protection in a New York bankruptcy court back in January, following the collapse of crypto hedge fund Three Arrows Capital.
READ MORE: 3 Best Crypto Projects That Will Boom In 2023 & During The Next Bull Run
Court filings reveal that Genesis is the largest unsecured creditor of FTX and its affiliates, with an outstanding amount of $226 million.
During the course of the bankruptcy proceedings, FTX debtors had objected to Genesis’ estimation that it was entitled to claims totaling zero.
However, it seems that these objections and disputes have now been resolved with the latest development of the agreement in principle.
Both FTX and Genesis have been operating under court supervision while trying to collect funds for their respective creditors.
The proposed settlement could be a significant step towards resolving their financial woes and settling the bankruptcy case between the two parties.
However, the actual details of the settlement and its implications remain to be seen until the documentation is finalized and court approval is obtained.
Other Stories:
Tennessee Realtor Couple Charged in $6M ‘Blessings of God Thru Crypto’ Investment Fraud
Ripple’s Chief Legal Officer Dismisses Concerns of SEC Appeal, Predicts Further Victory
KuCoin Denies Layoff Rumors Amidst Crypto Industry Stabilization
