FTX Seeks $176 Million Settlement with Genesis Entities Amid Legal Dispute
According to a legal filing on August 16, FTX, the bankrupted cryptocurrency exchange, and its CEO, John J. Ray III, have submitted a motion to settle with Genesis entities for $176 million.
With motion hearing scheduled for September 9, FTX Trading and related debtors have formally requested court intervention to settle a $176 million dispute with Genesis, who is seeking to address customer claims amounting to the same sum against FTX Trading and its affiliates.
The Settlement Agreement provides significant economic advantages to FTX trading and its Debtors as it avoids the complexities and delays of multi-jurisdictional litigation, extensive discovery, and uncertainties of adjudicating preference claims in the New York Bankruptcy Court.
In CEO John J. Ray III declaration filled in court, discussions were initiated between FTX Trading and Debtors and the Genesis Entities to settle their disputes and claims, including ongoing litigation regarding "the Lift Stay Motion and the Estimation Motion since June 30, 2023.
These efforts led to the Settlement Agreement, which resolves all disputes between the parties by allowing FTX and its general unsecured claim worth $176 million in the Genesis Debtors' chapter 11 cases.
Moreover, the Genesis Entities are giving up all claims against the FTX Entities. This encompasses liquidated claims totaling over $215 million, preference claims of around $140 million, unliquidated claims, and potential replacement claims under section 502(h) of the Bankruptcy Code, should the Debtors succeed in their preference claims against the Genesis Entities.
FTX creditors are dissatisfied, prompting FTX's Unsecured Creditors Committee (UCC) to contest the agreement. They are concerned about Alameda's
Read more on cryptonews.com
