NEW YORK October 12, 2023– Crypto lending firm Genesis Global Capital and the bankrupt cryptocurrency exchange FTX reached a settlement agreement worth $175 million, according to court filings on Wednesday, October 11. 1
The settlement resolves a dispute between the two companies that arose after FTX filed for bankruptcy in November 2022.
Genesis had extended loans to FTX affiliate Alameda Research, and FTX claimed that Genesis owed it billions of dollars in damages.2
Under the terms of the settlement, Genesis will pay FTX $175 million and FTX will withdraw all of its claims against Genesis. The settlement is still subject to approval by a bankruptcy court judge. 3
The settlement is a positive development for both Genesis and FTX.
Reports said that this allows Genesis to avoid a protracted legal battle and to focus on recovering from its own financial difficulties. It also allows FTX to recover some of the money that it lost in its bankruptcy filing.
Analysts see the settlement as a positive development for the crypto industry as a whole.
FTX, a cryptocurrency exchange was founded in 2019 and quickly became one of the largest and most popular cryptocurrency exchanges in the world. However it crashed in November 2022.
Genesis, a cryptocurrency lending firm, was closely tied to FTX. Genesis had extended loans to FTX affiliate Alameda Research, and FTX claimed that Genesis owed it billions of dollars in damages after FTX filed for bankruptcy.
The two companies eventually reached a settlement agreement worth $175 million. Under the terms of the settlement, Genesis will pay FTX $175 million and FTX will withdraw all of its claims against Genesis.
- Genesis, FTX: https://www.serve-now.com/resources/court-filing-and-e-filing[↩]
- Genesis, FTX: https://www.reuters.com/technology/ftx-tied-alameda-gets-175-mln-claim-genesis-bankruptcy-estate-2023-08-17/[↩]
- Genesis, FTX: https://www.legalmatch.com/law-library/article/what-is-a-settlement-agreement.html[↩]
