Bankrupt crypto companies FTX Trading Ltd. and Genesis Global Holdco LLC reached an in-principle agreement on resolving a dispute involving their Chapter 11 cases.
(Bloomberg) — Bankrupt crypto companies FTX Trading Ltd. and Genesis Global Holdco LLC reached an in-principle agreement on resolving a dispute involving their Chapter 11 cases.
Collapsed exchange FTX had argued that it was owed as much as $3.9 billion by crypto lender Genesis, a contention that Genesis rejected. The sum was later reduced to up to $2 billion.
Their legal representatives said in a Thursday letter to a bankruptcy judge that the two parties’ claims against each other would be settled by the agreement.
They plan to file motions to bankruptcy courts for approval of the deal. The letter didn’t provide details about the settlement.
The settlement would likely be a relief for many Genesis creditors, who expected the disagreement to delay bankruptcy proceedings and the eventual payout of claims.
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