FTX files objection to Genesis after being snubbed in $0.00 claim estimate News ▸ US ▸ FTX ▸ Bankruptcy
FTX files objection to Genesis after being snubbed in $0.00 claim estimate
FTX also complained that Genesis excluded it from discussions of its recovery plan.
2 min read
Updated: Jun. 3, 2023 at 3:16 pm UTC
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FTX and its associated debtors declared numerous objections to Genesis’s bankruptcy proceedings and recovery plans in a June 2 court filing.
FTX’s claim estimated at zero
On May 9, Genesis began to seek a 100-day extension for its Chapter 11 recovery plan. The company later submitted other filings in support of that plan.
FTX debtors have now filed a complaint about Genesis’ June 1 motion. In that motion, Genesis attempted to estimate FTX debtors’ claims at $0.00 — whereas FTX said in May that it aimed to recover about $4 billion from Genesis’ bankruptcy case.
FTX debtors did not say whether they still intend to recover $4 billion. However, they affirmed that they are “by far the largest unsecured creditors” in the case, a fact that they say was previously acknowledged by Genesis debtors themselves.
Genesis initially justified itself by stating that the $0.00 estimate is necessary to avoid delays in pursuing its reportedly undisclosed Chapter 11 recovery plan.
Genesis’ plans are highly private
FTX debtors also complained about the secrecy of Genesis’ plan by noting that they have not been invited to participate in the mediation process. They said they were excluded despite Genesis debtors’ claims that they are working with “all parties” to create the plan.
Furthermore, FTX debtors urged for Genesis’ mediation process to be abandoned entirely, stating that the plan is a “waste of estate resources” without FTX’s participation.
FTX debtors additionally complained that Genesis and its debtors filed their latest June 1 motion without providing any advance notice.
FTX debtors want to liquidate claims
In response to Genesis’ apparently neglectful decisions, FTX and its debtors have moved to request relief from the stay. The original stay would have prevented FTX debtors from taking action against Genesis in FTX’s own bankruptcy case.
If relief from the stay is granted, FTX debtors will attempt to liquidate their claims against Genesis Global Capital as part of FTX’s bankruptcy proceedings.
FTX debtors say that their motion is scheduled for a June 15 hearing.
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Mike Dalton
Before transitioning to crypto writing in 2018, Mike studied library and information sciences. Currently, he resides on Canada's West Coast.
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FTX
FTX is a defunct cryptocurrency exchange, currently in bankruptcy proceedings, that was founded by Sam Bankman-Fried and Zixiao “Gary” Wang in May 2019.
Genesis
Genesis is an institutional digital asset markets and a full-service digital currency prime brokerage providing a single point of access for select qualified individuals and global institutional investors.
