A cryptocurrency exchange FTX, and a crypto lender Genesis, reached a preliminary agreement to resolve the claims they had against each other in the bankruptcy case.
Recently, their lawyers sent a letter to the bankruptcy judge, stating “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,”
Both firms are facing financial difficulties and have been trying to collect money to pay their creditors while under court supervision. The settlement they are working on would resolve FTX’s claims against Genesis and vice versa.
It would also withdraw any pending motions related to those claims. Both parties plan to finalize and seek court approval for the settlement soon.
FTX had previously claimed that Genesis owed them up to $4 billion, but that amount was reduced to $2 billion in a recent letter to the judge. Genesis had filed for bankruptcy protection earlier in the year after a crypto hedge fund called Three Arrows Capital collapsed.
To give them more time to work out the details, they requested the court to postpone upcoming deadlines for current motions and briefs.
This recent development seems to have settled the disagreements between FTX and Genesis over the amount owed, bringing them closer to resolving the bankruptcy case.
Also Read: Genesis Receives Extension for Filing Bankruptcy Recovery Plan
