FTX and Genesis, two crypto firms that were entangled in a legal dispute, have reportedly reached a preliminary agreement to settle their claims. The agreement, subject to further documentation, aims to resolve the issues raised by both parties in the Chapter 11 bankruptcy cases.

The details of the settlement have not been disclosed in the letter submitted by their legal representatives to Judge Sean H. Lane.

Genesis emerged as the largest unsecured creditor of FTX and its affiliated companies, claiming $226.3 million owed to them, as per a court filing from January that listed major creditors. On the other hand, FTX asserted that Genesis owed them nearly $4 billion, which was later reduced to $2 billion, a claim that Genesis denied.

After the collapse of FTX in November, Genesis Global Capital, the lending division of Genesis, temporarily suspended redemptions and new loans due to market dislocation and the loss of industry confidence caused by FTX's implosion. The company filed for bankruptcy protection in January, having already suffered significant losses due to the collapse of Three Arrows Capital.

It's important to note that Genesis is owned by Digital Currency Group (DCG), which also owns CoinDesk.