Crypto Lender Genesis and FTX Reach Agreement in Ongoing Dispute
Crypto lender Genesis Global Capital and bankrupt crypto firm FTX have reached an agreement in principle to resolve their claims in an ongoing dispute. The agreement, subject to documentation, would settle the claims made by both parties in the Chapter 11 cases. Genesis is the largest unsecured creditor of FTX, with $226.3 million owed, while FTX claimed that Genesis owed up to $2 billion. Genesis temporarily halted redemptions and new loans after FTX’s collapse in November. Genesis filed for bankruptcy protection in January due to losses from the collapse of Three Arrows Capital. Genesis is owned by Digital Currency Group, which also owns CoinDesk.
Key Points:
– Genesis Global Capital and FTX have reached an agreement in principle to settle their claims in the ongoing dispute.
– The agreement is subject to documentation and would resolve claims made by both parties in the Chapter 11 cases.
– Genesis is FTX’s largest unsecured creditor, with $226.3 million owed.
– FTX claimed that Genesis owed up to $2 billion, which Genesis has denied.
– Genesis temporarily halted redemptions and new loans after FTX’s collapse in November.
Hot Take:
The agreement between Genesis and FTX marks a significant step towards resolving their dispute and potentially recovering funds for both parties involved. With Genesis being FTX’s largest unsecured creditor, this agreement could have a significant impact on the bankruptcy proceedings. It remains to be seen what the details of the settlement are and how they will affect the overall outcome of the case. Nonetheless, this development brings some hope for a resolution and highlights the complexities and challenges faced by crypto lenders and firms in the volatile crypto industry.
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