FTX, Genesis reach in-principle agreement to settle bankruptcy case
Bankrupt crypto exchange FTX and crypto lender Genesis have reached an agreement in principle to resolve the claims brought by FTX in its bankruptcy case.
On July 27, legal counsels for both firms sent a letter to bankruptcy Judge Sean Lane stating that they had agreed to a settlement.
However, the agreement was in principle and did not provide any details on the settlement.
Both firms are bankrupt and have been trying to collect money for creditors while under court supervision.
The settlement would resolve FTX’s claims against Genesis debtors and vice versa. It would also withdraw pending motions related to those claims. Both parties intend to document and seek court approval of the settlement promptly, it stated.
“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.”
To allow time to finalize terms, they requested the court adjourn upcoming deadlines on current motions and due briefs.
FTX has previously claimed that Genesis, which is owned by Digital Currency Group, owed the bankrupt exchange as much as $4 billion. However, it reduced the amount to $2 billion according to a letter sent to Judge Lane earlier this month.
Related: FTX debtors object to Genesis’ ‘critical’ claims estimate of ‘$0.00’
Genesis filed for Chapter 11 bankruptcy protection in a New York bankruptcy court in January following the collapse of crypto hedge fund Three Arrows Capital.
The crypto lender is the largest unsecured creditor of FTX and its affiliates with $226 million owed, according to court filings.
In June, FTX debtors objected to Genesis’ estimation that it was entitled to claims totaling zero, however, these claims and objections appear to have been settled with this latest development.
Magazine: Get your money back: The weird world of crypto litigation
MPs and peers could be forced to submit to criminal record checks under proposals submitted by a new Labour MP.
In a letter seen by Sky News, Jo White urged the leader of the Commons to examine whether a new committee set up to modernise parliament should force all new members to have checks due to their access to young and vulnerable people.
She suggests in-depth background checks by the Disclosure and Barring Service – commonly known as DBS checks – as the initial stages of introducing MPs to parliament.
Candidates are currently banned from running to be an MP if they have been jailed for more than a year in the UK.
However, there is no requirement for DBS checks, something most other jobs require when applying for positions working with vulnerable people.
Ms White previously submitted an early-day motion on this issue, with cross-party signatures including 13 other Labour MPs supporting her motion.
In her letter to the committee, the Bassetlaw MP writes: “It is a privilege that, as parliamentarians, we can work with local schools, care homes and hospitals, but we must be proactive in preserving this trust.
“Implementing a mandatory check would protect both the people we visit and ourselves. It would be key to maintaining public trust and high workplace standards across the estate and in our constituencies.”
DBS checks are standard practices for GPs, nurses, teachers and other professions. They let potential employers know if a candidate has a criminal record or is banned from working with children or vulnerable adults.
Many local authorities already run DBS checks on elected officials but it’s not standard practice in parliament.
Prospective MPs can stand for election despite having a criminal record or appearing on the child-barred list or adult-barred list unless they have served a prison term over 12 months.
In fact, they do not need to disclose any criminal behaviour to the public prior to becoming a candidate.
The main vetting process before entering the House of Commons is done through political parties, who set their own rules for carrying out any such checks.
MP James McMurdock (right) was convicted of assaulting his then girlfriend in 2006. Pic: PA
None of the Reform UK MPs have signed the early-day motion and leader Nigel Farage said last election there was “no vetting” of candidates.
This has already caused some controversy.
One Reform MP, James McMurdock, was jailed 19 years ago for repeatedly kicking his then girlfriend, according to court documents disclosed by The Times.
The South Basildon and East Thurrock MP attacked her in 2006 while drunk outside a nightclub and spent 21 days in a young offenders’ institution.
He had not publicly disclosed the conviction and described it as a “teenage indiscretion” when asked about the incident last year.
Under new rules, new MPs might have to fully disclose their criminal past.
Read more from Sky News:
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The creation of a modernisation committee was a Labour manifesto promise and now sits as a cross-party group tasked with reforming House of Commons procedures and improving standards.
The committee said it would not be commenting on submissions until it’s had time to fully consider all options, but is due to publish an initial report early this year.
Nigel Farage has said Tommy Robinson “won’t be” joining Reform UK after Elon Musk showed support for the jailed far-right activist on social media.
The billionaire owner of X, who has spoken positively about Reform UK and is reportedly considering making a donation to the party, has been critical of the government’s handling of child sexual exploitation across a number of towns and cities more than a decade ago.
While the Reform UK leader described the billionaire owner of X as “an absolute hero figure, particularly to young people in this country”, he distanced himself and his party from Robinson, who is currently serving an 18-month prison sentence for contempt of court.
Mr Musk endorsed the far-right activist and claimed Robinson was “telling the truth” about grooming gangs, writing on X: “Free Tommy Robinson”.
Speaking to broadcasters ahead of the start of Reform UK’s East Midlands Conference tonight, party leader Mr Farage did not directly address Mr Musk’s comments, but said: “He has a whole range of opinions, some of which I agree with very strongly, and others of which I’m more reticent about.”
He went on to say that having Mr Musk’s support is “very helpful to our cause”, describing him as “an absolute hero figure, particularly to young people in this country”.
He continued: “Everyone says, well, what about his comments on Tommy Robinson? Look, my position is perfectly clear on that. I never wanted Tommy Robinson to join UKIP, I don’t want him to join Reform UK, and he won’t be.”
Reform UK leader Nigel Farage has said that Tommy Robinson will not be joining the party
Read more:
Musk’s comments ‘misjudged’ and ‘misinformed’, says health secretary
Later on GB News, Mr Farage added that Mr Musk “sees Robinson as one of these people that fought against the grooming gangs”.
“But of course the truth is Tommy Robinson’s in prison not for that, but for contempt of court,” he said.
Mr Farage added: “We’re a political party aiming to win the next general election. He’s not what we need.”
How did Elon Musk become involved?
The online campaign from Mr Musk began after it emerged that Home Office minister Jess Phillips had denied requests from Oldham Council to lead a public inquiry into child sexual exploitation in the borough, as the Conservatives had done in 2022.
In a letter to the authority in Greater Manchester, Ms Phillips said she believes it is “for Oldham Council alone to decide to commission an inquiry into child sexual exploitation locally, rather than for the government to intervene”.
An Oldham Council spokesman previously said: “Survivors sit at the heart of our work to end child sexual exploitation. Whatever happens in terms of future inquiries, we have promised them that their wishes will be paramount, and we will not renege on that pledge.”
Read more:
Is Kemi Badenoch dancing to Elon Musk’s tune?
Labour lose control of council as 20 councillors quit
Mr Musk posted on X multiple times about the scandal, and claimed Sir Keir Starmer had failed to bring “rape gangs” to justice when he led the Crown Prosecution Service (CPS). In 2013, Sir Keir introduced new guidelines for how child sexual abuse victims should be treated and how a case should be built and presented in court.
The SpaceX and Tesla boss also endorsed posts about Robinson.
Robinson, who is 42 years old and whose real name is Stephen Yaxley-Lennon, admitted at Woolwich Crown Court in October to breaching an injunction banning him from repeating libellous allegations against a Syrian refugee schoolboy, after he was successfully sued for libel in 2021.
The plans are not yet concrete, as Coinbase is awaiting regulatory clarity on securities tokenization.
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