On July 27th, the cryptocurrency exchange FTX and the digital lending company Genesis reached a settlement agreement to resolve their dispute over compensation following FTX’s bankruptcy. This agreement came after both companies agreed to settle their grievances with each other.
The settlement agreement will address the claims that FTX has raised against Genesis regarding outstanding debts, and vice versa. It will also cancel any pending actions related to the disputed claims. Both parties intend to promptly prepare documentation and seek court approval for this settlement.
In the lawsuit with FTX, Genesis is known to be the largest unsecured creditor along with several affiliated companies. According to the records, FTX has a debt of over 226 million USD owed to Genesis. However, FTX also argued that Genesis owed them 4 billion USD in the court filings, which was later reduced to 2 billion USD.
FTX officially filed for bankruptcy in early November 2022, causing significant losses to the cryptocurrency market and heavily impacting major companies such as 3AC, BlockFi, Genesis, Sequoia, and many others.