Hassan Maishera
TL;DR
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Crypto lender Genesis Global Capital and FTX have reached an agreement in principle to settle the ongoing bankruptcy dispute.
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Genesis Global Capital is FTX’s largest unsecured creditor, with $226 million in claims.
FTX And Genesis Reach A Settlement Agreement
Bankrupt crypto firms FTX and Genesis have come to an agreement in principle that would resolve the ongoing bankruptcy dispute. The settlement will resolve claims made by both entities in their ongoing dispute.
In a letter filed by their legal representatives to Judge Sean H. Lane, the two entities stated that;
“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.”
Genesis Capital is the largest unsecured creditor of FTX and its affiliated companies. The investment firm lent over $226 million to the now-bankrupt cryptocurrency exchange.
FTX also claimed that Genesis owed around $4 billion but later reduced the figure to $2 billion. However, Genesis has denied owing FTX any money.
Genesis Global Capital is the lending arm of Genesis. The firm was forced to halt redemptions and new loans following FTX’s collapse in November 2022. Genesis made this decision due to the FTX saga and the downturn in market participation at the time.
The company eventually filed for bankruptcy in January 2023, recording huge losses to the tune of several hundred million after the collapse of Three Arrows Capital.
Meanwhile, FTX is looking to rebrand and relaunch its international service, but the bankruptcy case is still ongoing. The cryptocurrency exchange is seeking for investors to raise funds and allow it to relaunch its services soon.
