FTX Exchange Objects to Prolonged Mediation Talks with Bankrupt Genesis – Here's the Latest
FTX and its affiliates have objected to extending court-mediated settlement talks for bankrupt crypto lender Genesis.
In a recent court filing, FTX said it had not been invited to a court-appointed mediation in May that involved Genesis, its parent company Digital Currency Group, and creditor Gemini Trust Co, despite being a major Genesis creditor.
The bankrupt crypto exchange also objected to a motion filed by Genesis Global that sought to estimate the FTX debtors’ claims at $0.00, claiming that it was the largest creditor in Genesis’ Chapter 11 proceedings with claims worth a whopping $3.9 billion.
On the other hand, Genesis argued that throwing out the FTX claims “is critical to avoid undue delay in the timing and amount of creditor distributions, and to expeditiously pursue confirmation of a Chapter 11 plan.”
FTX’s filing adds to more than a dozen other individual Genesis creditors who have filed objections to extend the mediation.
A hearing on the extension is scheduled for Monday but these objections are delaying Genesis and its creditors’ attempts for a settlement.
Genesis, a firm that used to offer clients yield for lending out their digital coins, filed for bankruptcy in January following the credit crisis that hit the crypto industry.
The crypto lender's inability to reach a final settlement with its creditors in February has resulted in months-long delays and pressure from individual creditors to resolve financial matters as soon as possible.
“As a creditor who has diligently been following the proceeding, I, along with many others, have observed a concerning absence of substantial progress in resolving the financial matters at hand,” wrote creditor Yosif Sharif.
“Without concrete actions or a genuine commitment to
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