FTX and Genesis Reach a Principle Agreement! - COINTURK NEWS
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FTX and Genesis Reach a Principle Agreement!

8:42 am (69 days ago)
July 28, 2023

Court Informed of Principle Agreement

It has been announced that the bankrupt cryptocurrency exchange FTX, which filed for bankruptcy in November 2022, and Genesis, which filed for bankruptcy earlier in the year, have reached a principle agreement to resolve the ongoing disputes between both parties. As known, the crypto lending company Genesis Global Capital is the largest unsecured creditor of FTX with a claim of $226 million.

In a letter submitted to Judge Sean H. Lane by legal representatives of both FTX and Genesis, it was stated that “The parties have reached a principle agreement subject to documentation to resolve the claims made by FTX debtors against the debtors in these Chapter 11 cases and the claims made by Genesis debtors against FTX debtors in FTX’s Chapter 11 cases, among other matters.”

The letter submitted to the court did not provide further details about the settlement.

According to the file submitted to the court in January, which included the list of major creditors, Genesis emerged as the largest unsecured creditor of FTX and its affiliated companies with a debt of $226.3 million. In parallel, FTX claimed that Genesis had a debt of approximately $4 billion, which later decreased to $2 billion, and Genesis rejected this claim.

Genesis Global Capital’s Impactful Bankruptcy

Genesis’ credit division, Genesis Global Capital, temporarily halted settlements and new loans following the collapse of the cryptocurrency exchange FTX. A spokesperson stated at the time that this decision was made in response to the excessive market issues caused by the collapse of FTX and the loss of trust in the industry.

The company later filed for Chapter 11 bankruptcy protection in January. The collapse of Genesis Global Capital had caused significant losses, amounting to millions, as a result of the collapse of the crypto hedge firm Three Arrows Capital.

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