FTX Aims for $176 Million Settlement with Genesis Entities During Legal Conflict

FTX, the bankrupt cryptocurrency exchange, and its CEO, John J. Ray III, filed a motion to settle with Genesis entities for $176 million on August 16.

FTX Trading and related debtors have requested court intervention to settle a $176 million dispute with Genesis, who is seeking to address customer claims worth the same amount against them. A motion hearing is scheduled for September 9.

The Settlement Agreement saves FTX trading and its Debtors money by avoiding multi-jurisdictional litigation, extensive discovery, and preference claim adjudication in the New York Bankruptcy Court.

CEO John J. Ray III stated in court that FTX Trading, Debtors, and Genesis Entities were in talks to settle their disputes and claims, including “the Lift Stay Motion and the Estimation Motion since June 30, 2023.

The Settlement Agreement allows FTX and its $176 million general unsecured claim in the Genesis Debtors’ chapter 11 cases, resolving all disputes.

Genesis Entities are also relinquishing all FTX claims. This includes liquidated claims over $215 million, preference claims of $140 million, unliquidated claims, and potential replacement claims under section 502(h) of the Bankruptcy Code if the Debtors win their preference claims against the Genesis Entities.

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Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.

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