Bankrupt Crypto Platforms FTX, Genesis Set to Resolve Dispute
Representatives of FTX and Genesis told the US court that they are prepared to resolve the bankruptcy issue.
The attorneys for FTX and Genesis indicate in a document submitted to Judge Lane of the United States Bankruptcy Court that they reached an understanding regarding a potential settlement between the two parties in the current bankruptcy case.
No more information about the arrangement was offered in the letter. But if the matter is resolved, the reverse petitions and the FTX's claims against Genesis debtors may be satisfied.
Both FTX and Genesis are currently insolvent. In several lawsuits filed worldwide, its investors and clients are attempting to recover their money.
Genesis and FTX Relation
As of January, Genesis owed the crypto exchange and its affiliated firms $226.3 million, making it the largest unsecured creditor. When Genesis eventually reduced their debt to $2 billion, FTX initially claimed it owed them nearly $4 billion.
There were also allegations that Genesis executives got FTT tokens at a discount. Genesis Global Capital, the company's lending division, temporarily stopped redemptions and new loans after exchange's collapse in November.
According to a spokesman, the FTX collapse caused a significant market disruption and a lack of industry trust, which led to the decision being made. After suffering losses of several hundred million dollars due to the failure of Three Arrows Capital, the company declared bankruptcy in January.
