FTX and Genesis representatives informed the US court that they are ready to settle the bankruptcy case.
@Geminiearn @Gemini
— CryptoEquality (@crypto_equality) July 28, 2023
Genesis Debtor just submitted this letter to the court indicating agreement with FTX. Lift Stay Motion and Estimation will be mooted. Waiting for the "Settlement" to see what the numbers are. pic.twitter.com/hvRK8lX6X6
The letter provided no further details on the agreement. But if the case is settled, both FTX’s claims against Genesis debtors and the reverse petitions could be satisfied.
Currently, both FTX and Genesis are bankrupt. Their investors and clients are seeking to get their money back in various lawsuits worldwide.
FTX and Genesis relation
Genesis had become the biggest unsecured creditor of FTX and its connected entities, owing $226.3 million to FTX, as of January.
At the same time, FTX alleged that Genesis owed them over $4 billion, which they eventually lowered to $2 billion. More claims were made that Genesis execs received FTT tokens at a discounted price.
Following the November collapse of FTX, Genesis Global Capital, the company’s lending arm, temporarily suspended redemptions and new loans.
A representative said that this decision was taken due to the substantial market dislocation and lack of industry trust brought on by the FTX collapse. The firm filed for bankruptcy in January after suffering losses of several hundred million dollars due to the collapse of Three Arrows Capital.
