The long-standing legal feud between FTX Trading and Genesis Global Holdco is taking a turn towards resolution. The two parties have reached an initial agreement, in principle, following bankruptcy protection disputes that have made industry headlines. An official letter to the bankruptcy judge representing their cases has affirmed the intent of the firms to put their settlement into motion.
FTX, Genesis Engage in Crypto Bankruptcy Settlement
The saga, rooted in the insolvency of FTX Trading, began when the company claimed that Genesis, a crypto lending platform, owed them a sum of nearly $2 billion. This claim could have considerably slowed down Genesis’ court procedures. Now, with the letter to the presiding judge dated July 27, 2023, the path to settlement seems more tangible, promising to bring an end to the bankruptcy bickering.
The missive to the court represents a significant step in resolving the issue between the disputing parties. FTX Trading Ltd., and its associated debtors, along with the debtors in the Chapter 11 bankruptcy case, have confirmed that they’ve reached a preliminary agreement. The court filing states:
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.
Moreover, the settlement plans to dismiss FTX’s motion to modify the automatic stay and the motion to establish procedures for estimating the number of FTX debtors’ claims against the debtors.
In essence, the settlement’s approval would mean the withdrawal of these motions, simplifying the otherwise complex legal proceedings. The settlement’s details are yet to be disclosed. However, the involved parties detailed they are set to act swiftly to formalize their agreement and seek approval from the court.
Genesis continues to grapple with additional legal tussles, including a freshly lodged lawsuit aimed at its parent entity, Digital Currency Group (DCG), as well as its CEO and progenitor, Barry Silbert.
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