FTX Trading Ltd and Genesis Global Holdco LLC, two former major players in the cryptocurrency space, have reached an in-principle agreement to end their legal battle. According to Bloomberg reports, the agreement, as stated in a letter to the bankruptcy judge by their legal representatives, will settle both parties’ claims against each other.
It is anticipated that FTX and Genesis will soon file motions with the bankruptcy courts to seek approval of the deal. FTX, once a prominent player in the crypto exchange landscape, filed for Chapter 11 bankruptcy in November last year after suffering a significant downfall.
In an attempt to recover its losses and debt, FTX claimed that it was owed up to $3.9 billion by Genesis. However, Genesis quickly denied the claim, challenging the legitimacy and amount of the debt asserted by FTX. The dispute quickly escalated, resulting in a legal battle between the two companies.
As negotiations between FTX and Genesis progressed, a compromise became possible. The initial claim of $3.9 billion was reduced to a smaller sum of $2 billion. After a prolonged period of disagreement and legal proceedings, the legal representatives of both FTX and Genesis have jointly announced their intention to settle the dispute outside of court.
FTX and Genesis Settlement Awaits Approval
The specifics of the settlement between FTX and Genesis have not been made public, leaving the broader crypto community eager to learn more about the terms of the agreement. While the intention to settle has been announced, the details of the arrangement remain confidential.
It is anticipated that FTX and Genesis will soon file motions with the bankruptcy courts to seek approval of the deal. The court’s approval process will likely involve a thorough review of the arrangement to ensure its fairness and compliance with existing bankruptcy laws and regulations.
The bankruptcy judge will assess whether the terms of the settlement between FTX and Genesis adequately address the claims made by both parties and whether the agreement is in the best interest of all stakeholders involved.
