• FTX and Genesis have reached an agreement in principle to resolve their claims against each other.
• This comes after FTX decreased its claim from $4 billion to $2 billion earlier this month.
• Genesis is the largest unsecured creditor of FTX, owing them approximately $226 million.
FTX and Genesis Agree to Resolve Claims in Bankruptcy Case
FTX and Genesis are bankrupt and under court supervision as they work to collect funds for creditors. On July 27th, legal representatives from both companies informed bankruptcy judge Sean Lane that they had reached an agreement in principle to resolve their respective claims against one another.
Genesis is Largest Unsecured Creditor of FTX
Genesis is the largest unsecured creditor of FTX, with a debt amounting to approximately $226 million. Earlier this month, FTX decreased its claim from $4 billion to $2 billion. The agreement will also rescind any ongoing motions pertaining to such claims between the two entities.
Both Parties Intend To Document Agreement Quickly
The parties intend on swiftly documenting and requesting court approval of the settlement before it can come into effect. According to the letter sent to Judge Lane, “The Parties have reached an agreement in principle, subject to documentation, regarding a settlement that would resolve…the claims asserted by the Genesis Debtors against the FTX Debtors in the FTX Chapter 11 Cases”.
Previous Issue Between Two Companies
Previously, FTX had asserted that Genesis owed them up to $4 billion; however, with this most recent development, it appears that all outstanding claims between both parties have been resolved. This news has sparked speculation about whether or not FTX will resume operations soon.
FTC and Genesis have now agreed on an in-principle resolution for their mutual claims after months of litigation; however, court approval still needs to be sought before it can take effect officially. Furthermore there are speculations about whether or not FTA will resume operations soon due to this resolution being finalized..