FTX wants to settle its claims against crypto lender Genesis for $175 million. This amount is considerably reduced from its previous claim of roughly $4 billion.
The deal, which waives Genesis' counterclaims against FTX, accelerates the confirmation process for Genesis' Chapter 11 reorganization plan, avoiding lengthy and expensive litigation.
FTX CEO John J. Ray III argues that it is in the best interests of all parties. He also mentions that it will simplify the repayment of customer money.
The FTX 2.0 Coalition, on the other hand, has expressed its unhappiness. They cite an ongoing Department of Justice (DOJ) investigation against Genesis and its parent firm DCG.
They expect the Unsecured Creditors Committee to vote against the arrangement, noting Genesis' previous usage of client cash for repayments.