FTX and Genesis Global Capital have reached an agreement
to resolve disputes between the debtors of the now-bankrupt cryptocurrency companies.
The agreement was disclosed in a letter filed by their lawyers in the US
bankruptcy court for the Southern District of New York yesterday (Thursday).
“The parties have
reached an agreement in principle, subject to documentation, regarding a
settlement that would resolve, among other things, the claims asserted by FTX’s debtors against the debtors in these Chapter 11 cases and the claims
asserted by Genesis’ debtors against the FTX’s debtors in these FTX Chapter 11
cases,” the letter noted.
Following the bankruptcy
of FTX, Genesis emerged as the largest unsecured creditor of the cryptocurrency
exchange, owed USD $226 million, according to court documents filed in January.
Besides that, FTX claims that Genesis Global owes it USD $3.9 billion, an amount that was later reduced to USD $2 billion. Genesis, however, denied the claims.
FTX filed an application
to recover the funds from Genesis Global in cash and cryptocurrencies
