1 year ago
Bankrupt crypto companies FTX and Genesis Global announced they had reached an
agreement successful rule concerning claims made by the firms against themselves, per a July 27 letter to Judge Sean Lane.
Although the missive does not disclose the specifics of the colony terms, it mentions that the firms are aiming to resoluteness the claims asserted by FTX Debtors and Genesis Global Debtors against each different successful their respective Chapter 11 bankruptcy cases.
FTX moved to recover $3.9 billion from the bankrupt crypto lender Genesis successful May. However, the lender rejected this claim, estimating the crypto speech debtors’ claims astatine $0.00. FTX objected to Genesis’s bankruptcy proceedings and betterment plans pursuing the estimate.
On the different hand, a January tribunal filing revealed that Genesis was the largest unsecured creditor of the bankrupt exchange. FTX owes Genesis astir $226.3 million.
According to the letter, the parties are keen to papers the colony and record a “motion pursuant to Federal Rule of Bankruptcy Procedure 9019(a) for introduction of an bid approving the Settlement successful their respective courts.”
Meanwhile, the 2 companies noted that portion the statement could beryllium adopted arsenic a settlement, it was still subject to documentation and tribunal approval.
The parties besides requested an hold of deadlines for submitting motions oregon briefs to the court.
FTX filed for bankruptcy past twelvemonth pursuing a surge successful lawsuit withdrawals. The erstwhile CEO, Sam Bankman-Fried, acknowledged the company’s inability to conscionable these demands due to plus shortages. Court reports bespeak an approximate $9 cardinal discrepancy successful the exchange’s books.
Following FTX’s implosion, Genesis suspended each redemptions anterior to their bankruptcy filing successful January.
Since then, the lender has been entangled successful a ineligible tussle with Gemini, which filed a suit against Digital Currency Group, the genitor institution of Genesis. Gemini accused DCG of knowing that the lender had been bankrupt since 2022 but failed to pass investors.
Gemini and Genesis maintained a important concern business involving the Gemini Earn program.
The station Bankrupt crypto giants FTX and Genesis scope statement to resoluteness billion-dollar claims appeared archetypal connected CryptoSlate.
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