FTX and Genesis Strike $175 Million Dispute Settlement Deal
Date: 2023-08-17 Author: Karina Ziganova Categories: BUSINESS, IN WORLD
Bankrupt cryptocurrency exchange FTX has agreed to settle a $175 million dispute with Genesis.
According to the document, FTX Trading and its subsidiaries went to court to settle their differences with Genesis. The initial claims amounted to $3.88 billion and included a loan repayment made by a division of the hedge fund Alameda Research, as well as assets delisted by Genesis from FTX in the run-up to its bankruptcy in November.
Now FTX's Alameda Research is suing $175 million from the assets of bankrupt cryptocurrency company Genesis, according to court filings.
The deal cancels Genesis' parallel claims against FTX. Lawyers hope the new agreement will help companies close cases and recover funds to clients after lender Genesis Global Capital filed for bankruptcy in January.
"The settlement of the dispute will greatly facilitate the path to approval of the Chapter 11 reorganization plan without the cost of lengthy litigation," Genesis' lawyers said in the lawsuit.
In a parallel lawsuit, FTX CEO John J. Ray III agreed that the deal was fair.
