FTX, Genesis Reach Resolution in Bankruptcy Dispute

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Cryptocurrency exchange FTX and Genesis have reached an in-principle agreement to resolve any outstanding claims between the two bankrupt companies. This was announced in a letter to the bankruptcy judge Sean Lane on July 27th.

Both sides have been working to recover funds for creditors while being supervised by the court. The agreement will settle FTX’s claims against Genesis debtors and vice versa, and rescind any motions related to such claims. The two companies intend to document the settlement and seek approval from the court.

FTX previously stated that Genesis, owned by Digital Currency Group, owed up to $4 billion. However, they later decreased the amount to $2 billion in a letter to Judge Lane. Genesis filed for bankruptcy protection in a New York court in January and owes FTX $226 million, making them the largest unsecured creditor.

Genesis estimated that their claims totalled zero in June, but this agreement between FTX and Genesis has seemingly resolved all FTX debtors’ claims and objections. This comes at an interesting time as rumors of FTX resuming operations soon have been circulating.

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