FTX, Genesis seek to settle dispute in bankruptcy cases

Quick Take

  • Both bankrupt firms have reached an agreement in principle to resolve the claims brought by FTX against Genesis, their lawyers said.
  • They did not provide details of the deal but said they plan to file motions for approval of the settlement.

Bankrupt FTX Trading and Genesis Global Holdco have reached an agreement in principle to settle a dispute surrounding their bankruptcy protection cases, their lawyers said.

In a letter submitted Thursday to a bankruptcy judge, legal counsels for both firms said they intend to “promptly document the Settlement and file a motion pursuant to Federal Rule of Bankruptcy Procedure 9019(a) for entry of an order approving the Settlement in their respective courts.”

The letter, however, did not elaborate on the settlement.

Bankrupt FTX has previously claimed that crypto lender Genesis owed the failed exchange as much as $2 billion, a dispute that would likely delay Genesis's own court proceedings, Bloomberg reported earlier this month.


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Genesis hit by 3ac, FTX

In January, Genesis filed for Chapter 11 bankruptcy protection in New York federal bankruptcy court after it took a financial hit following the collapses of crypto hedge fund Three Arrows Capital and FTX last year.

Genesis owes around $3.6 billion to its top 50 creditors, including claims from Gemini, the crypto exchange founded by the Winklevoss twins.

Disclaimer: The former CEO and majority shareholder of The Block has disclosed a series of loans from former FTX and Alameda founder Sam Bankman-Fried.

© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.


About Author

Timmy Shen is an Asia reporter for The Block. Previously, he wrote about crypto and Web3 for Forkast.News from Taiwan after spending more than three years in Beijing covering finance and current affairs at Caixin Global and Chinese tech at TechNode. His China-related reporting has also appeared in The Guardian. When he's not chasing headlines, you'll find him savoring hot pot and shabu shabu in a Taipei local haunt. Timmy holds an MS degree from Columbia University Graduate School of Journalism. Send tips to [email protected] or get in touch on X/Telegram @timmyhmshen.


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