Court Filing Suggests FTX’s $2 Billion Lawsuit Against Genesis Is Coming To An End
July 29 2023 - 3:00PM
NEWSBTC
The legal tussle between bankrupt crypto exchange FTX and crypto
lender Genesis seems to be coming to a resolution, a recent court
filing reveals. According to the letter filed yesterday at the US
bankruptcy court for the Southern District of New York, both firms
– who happened to have filed for bankruptcy – have agreed to settle
their ongoing billion-dollar dispute. How The Feud Began FTX
filed a motion in May this year to recover its funds from Genesis
and “non-debtor affiliates” so the company could pay back its
creditors. The motion went as far as describing Genesis (who
attributed its solvency issues to FTX’s collapse) as “one of the
main feeder funds and instrumental to its [FTX and Sister company
Alameda Research] fraudulent business model.” Related Reading:
Shiba Inu Reclaims 14th Spot In Market After 5% Jump FTX further
claimed that Genesis received “avoidable transfers” from FTX’s
debtors totaling almost $3.9 billion. In response, Genesis denied
owing FTX and filed a motion asking the bankruptcy judge to rule
its debt to FTX as zero. However, a subsequent letter from FTX to
the bankruptcy judge showed that the company had reduced its claim
from $3.9 billion to $2 billion. FTT token trades at $1.3 amid
exchange's woes | Source: FTTUSD on Tradingview.com FTX’s claim
could have delayed a creditor payout and slowed Genesis’ bankruptcy
proceedings. However, with settlement in sight, things are likely
to move along quickly, as according to the letter, FTX, its
associated debtors, and debtors in its Chapter 11 bankruptcy case
have reached a preliminary agreement. The court filing reads: The
parties have reached an agreement in principle, subject to
documentation, regarding a settlement that would resolve, among
other things, the claims asserted by the FTX debtors against the
debtors in these Chapter 11 Cases and the claims asserted by the
Genesis debtors against the FTX debtors in the FTX Chapter 11
cases. Genesis Still Not In The Clear Despite reaching a settlement
with FTX, crypto lending platform Genesis still has other lawsuits
to deal with, including one filed by Gemini against its parent
company, Digital Currency Group (DCG), and its CEO, Barry Silbert.
Gemini’s co-founder Cameron Winklevoss called out Barry Silbert on
Twitter in an open letter, claiming that Silbert and DCG had
engaged in “Fraudulent Behavior.” Related Reading: This
Machine Learning Tool Was Asked To Predict XRP Price, Here’s What
It Said He warned that Silbert’s failure to reply and come to the
negotiation table by Friday would result in a lawsuit. In a
follow-up tweet, Winklevoss also tabled a “best and final offer”
involving a repayment plan. Still, Silbert and DCG failed to reply,
and true to his words, Winklevoss and Gemini filed a lawsuit
against DCG and Silbert for fraud on July 7. Featured image from
SlashGear, chart from Tradingview.com
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