FTX Objects To Genesis' Proposed Mediation Extension. FTX Trading Ltd.

03 Jun 2023, 08:00

FTX Objects To Genesis’ Proposed Mediation Extension FTX Trading Ltd. and its debtor-affiliates have joined a group of creditors of bankrupt crypto lender Genesis Global to oppose the extension of the mediation period proposed by the latter. Claiming to be Genesis’ largest unsecured creditor, the Bahamas-based bankrupt crypto exchange filed an objection to Genesis’ proposed mediation extension. FTX Objects To Genesis Marking Down Its $3.9 Billion ClaimAccording to the filing made with the U.S. Bankruptcy Court for the Southern District of New York earlier today, the FTX debtors asserted that they were the largest creditors in Genesis’ Chapter 11 proceedings with claims of a whopping $3.9 billion. The filing was made in response to a motion filed by Genesis Global late on Thursday night, which sought to estimate the FTX debtors’ claims at $0.00. FTX stated in the filing that Genesis’ motion was filed without any advance notice to the bankrupt crypto exchange and its affiliated debtors. Genesis described the motion as critical in order to avoid undue delay and “expeditiously pursue confirmation of a chapter 11 plan”. FTX highlighted that the Chapter 11 plan in question remained undisclosed and was under negotiation among creditors in the mediation party that were hand-picked by Genesis.