FTX and Genesis have come to an agreement in principle to settle claims made by both parties in their ongoing legal brawl. Both bankrupt firms had previously claimed that the other party owed money. However, the legal counsel representing both wrote to bankruptcy Judge Sean Lane stating that they had agreed to a settlement.
The exact settlement details remain undisclosed.
- The letter filed by their representatives at the United States Bankruptcy Court for the Southern District of New York stated,
“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.”
- While FTX filed for Chapter 11 bankruptcy last November, Genesis followed suit three months later after being battered by the fall of Three Arrows Capital in addition to the SBF-led crypto exchange.
- In a bid to help recoup its extensive list of creditors, FTX tried to claw back funds received by the lending firm and non-debtor affiliates.
- A previous filing showed that Genesis was the largest unsecured creditor of FTX and its affiliated companies, owing more than $226 million.
- On the other hand, FTX claimed that DCG’s lending arm owed approximately $4 billion. The figure was later altered to $2 billion.
- Genesis rebuffed the claim and even filed its own motion estimating that FTX is entitled to nothing.