FTX and Genesis, two bankrupt crypto companies, have reportedly reached an ‘in-principle agreement’, as outlined by their respective lawyers to a bankruptcy judge, to resolve claims laid against each. Over $4 billion has been claimed by FTX debtors in June, with Genesis having originally filed for Chapter 11 protection in January.
The conclusion of the agreement also requests the court to suspend upcoming deadlines to allow for further confirmation in regards to the terms and conditions of the settlement. Both parties set out together seeking court approval for the resolution – outlining that the funds from the debtor will be redistributed in matters benefiting someone else, ultimately a different enquiry.
It was further stated that lawyers representing the now bankrupt crypto companies claim that Genesis acted as a key funder, responsible for providing essential finances and supporting the business model of FTX – with lenders such as Alameda Research having more than $8 Billion in loans out at a peak point in 2021.
A joint motion consisting of such specifics, filed by the duel now-jetted firms will ultimately see the completion of all present claims and objections in this court-directed proceeding.
