According to a letter filed yesterday with the United States Bankruptcy Court for the Southern District of New York, disgraced crypto exchange FTX and lender Genesis-both of which filed for Chapter 11 bankruptcy at the beginning of November-have reached an agreement in principle to settle their ongoing multibillion-dollar dispute.
FTX, which filed for bankruptcy in November of last year, filed a motion in May of this year “to claw back funds received by Genesis and non-debtor affiliates” to help pay back its extensive list of creditors.
The petition went so far as to label Genesis, which declared bankruptcy in January as a result of the FTX debacle, as “one of the main feeder funds and instrumental to [the] fraudulent business model” of FTX and its sister company Alameda Research.
It also alleged Genesis received “avoidable transfers” worth over $3.9 billion from FTX’s debtors.
Genesis denied owing FTX anything and filed its own motion in June, requesting that U.S. Bankruptcy Judge Sean Lane estimate its debt to FTX as zero.
A later letter from FTX to Lane earlier this month revealed that the exchange had decreased its claim to $2 billion.