FTX and crypto lender Genesis announced that they have reached an agreement in principle to settle the claims brought by FTX in the bankruptcy case.
On July 27, the legal counsel of both companies sent a letter to bankruptcy Judge Sean Lane stating that they had agreed on a settlement. However, the agreement is in principle and does not contain any details about the agreement. Both firms are bankrupt and are trying to raise money for creditors while in court custody.
Intended to settle claims against debtors
The settlement will settle FTX’s claims against Genesis borrowers and vice versa. It will also withdraw pending motions on these demands. Both parties continue their efforts to document the agreement directly and obtain court approval. For now, only the companies that have reached an agreement in principle have stepped up many activities to make the business official.
FTX and Genesis requested that the dates be delayed to finalize terms, allow time, current motions and briefings. The bankruptcy of both companies in the past months has created a lot of discussion for a possible formal agreement in the future, albeit in principle at the moment.
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