FTX, a bankrupt cryptocurrency exchange, and cryptocurrency lender Genesis have reached an agreement in principle to settle claims brought by FTX in the bankruptcy case. On July 27, legal representatives for both companies informed bankruptcy judge Se an Lane that they had reached a settlement. However , the details of the settlement were not disclosed in the agreement in principle.
Both FTX and Genesis have been trying to raise funds for creditors under court supervision as part of their bankruptcy proceedings. The settlement will resolve FTX's claims against Genesis debtors and vice versa, and it will also withdraw any pending motions related to the se claims. Both parties intend to promptly document the settlement and seek court approval for its implementation.
Previously, FTX had claimed that Genesis, which is owned by Digital Currency Group, owed the bankrupt exchange up to $4 billion. However, FTX later reduced the amount claimed to $2 billion in a letter sent to Judge Lane earlier in the month. Genesis filed for Chapter 11 bankruptcy protection in New York bankruptcy court in January following the collapse of cryptocurrency hedge fund Three Arrows Capital. As the largest unsecured creditor of FTX and its affiliates, Genesis is owed $226 million, according to course t documents. In June, FTX debtors had objected to Genesis's claim of zero entitlement, but it appears that these claims and objects have been resolved with the recent agreement in principle.
