FTX and Genesis have reached a preliminary agreement to settle their legal dispute, according to their legal representatives. The settlement will address the claims made by both bankrupt firms against each other while under court supervision. The specific details of the settlement have not been disclosed yet.
The agreement comes after both FTX and Genesis had previously accused each other of owing money. FTX filed for Chapter 11 bankruptcy last November, followed by Genesis three months later.
FTX sought to recover funds from the lending firm and non-debtor affiliates to repay its creditors, with Genesis being its largest unsecured creditor and owing over $226 million.
On the other hand, FTX claimed that DCG’s lending arm owed approximately $4 billion, which was later revised to $2 billion. Genesis rejected this claim and even filed its motion stating that FTX was entitled to nothing.
The settlement agreement is subject to documentation, and the exact terms will be revealed once finalized. The resolution is expected to put an end to the legal battle between the two parties and provide clarity on their financial obligations.
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