Two bankruptcy companies, FTX and Genesis, have made significant progress in resolving their ongoing disputes over bankruptcy protection cases.
FTX and Genesis Settled in Bankruptcy Lawsuits
The legal counsel of both companies submitted a letter to the bankruptcy judge on Thursday, stating that they had agreed in principle to resolve the matter.
The letter stated that the parties are working diligently to finalize the agreement and plan to document it immediately. The parties also plan to file a request for the court to approve the settlement under Federal Bankruptcy Procedure Rule 9019(a).
However, the letter did not disclose the details of the settlement and stated that the details of the settlement will be announced at a later date.
Earlier this month, FTX claimed that Genesis, a crypto lender, owed up to $2 billion to the bankrupt exchange. This dispute had the potential to hamper Genesis' own court proceedings.
In January, Genesis sought Chapter 11 bankruptcy protection in New York federal bankruptcy court over financial losses from the collapses of crypto hedge fund Three Arrows Capital and FTX last year.
According to reports, Genesis currently owes about $3.6 billion to its 50 largest creditors, including requests from industry leaders like Gemini, the crypto exchange founded by the Winklevoss twins.
As the settlement agreement progresses, the settlement may bring some clarity and closure to both FTX and Genesis' bankruptcy lawsuits.
Approval of the agreement by the courts will be a crucial step in addressing the financial and legal challenges faced by the companies involved.
Market participants and industry watchers will follow developments closely to understand the impact of the solution on the crypto market and companies' stakeholders.
*Not investment advice.