FTX and Genesis Reach Agreement in Bankruptcy Dispute
Crypto lender Genesis Global Capital holds $226 million in claims as FTX’s largest unsecured creditor.
**List Your Social Profile Links On CryptosHeadlines.com Send us your name and social profile links, and we will add your name along with your profile links to the Supporter Page as a proud supporter of CryptosHeadlines.com. Supporter's Page**
FTX and Genesis, both bankrupt crypto firms, have reached an agreement in principle to resolve the claims made by both parties in their ongoing dispute.
Legal representatives of both firms filed a letter to Judge Sean H. Lane, stating that the parties have reached an agreement in principle, pending documentation, to settle the claims asserted by the FTX Debtors against the Debtors in the Chapter 11 Cases and the claims asserted by the Genesis Debtors against the FTX Debtors in the FTX Chapter 11 Cases.
Genesis Global Capital emerged as FTX’s largest unsecured creditor with $226.3 million owed, according to a January court filing listing major creditors.
FTX claimed that Genesis owed nearly $4 billion, later reduced to $2 billion, but Genesis denied this allegation.
In response to FTX’s collapse in November, Genesis Global Capital, the lending division of Genesis, temporarily halted redemptions and new loans due to extreme market dislocation and a loss of industry confidence.
In January, Genesis filed for bankruptcy protection, already weakened by losses amounting to several hundred million from the collapse of Three Arrows Capital.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.