FTX and Genesis reach in-principle agreement to settle bankruptcy claims

FTX and the crypto-lending platform Genesis reached an in-principle agreement to settle the claims brought against the crypto exchange in its bankruptcy case.

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Legal counsel for the parties filed a notice with the judge presiding over the proceedings. It contained no details. Both sides intend to obtain court approval of the document.

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The settlement could resolve FTX’s claims against Genesis’ debtors, and vice versa. Approval of the agreements would lead to the withdrawal of the motions currently under consideration.

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In May 2023, FTX’s lawyers filed a lawsuit against the bankrupt crypto-lending platform Genesis seeking to return $3.9 billion.

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According to court documents, the lending platform is among the exchange’s largest unsecured creditors along with its affiliates, with a debt of $226 million.

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In June, the FTX debtors challenged the latest valuation, arguing that the firm was not owed anything. According to Cointelegraph, such claims and objections apparently were settled under the terms of the global settlement.

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In June, the current management team of FTX said it had returned liquid assets amounting to about $7 billion.