FTX Excluded From Genesis Bankruptcy Mediation, Judge Rules

• A US Bankruptcy Judge has ruled against FTX’s inclusion in the mediation between now-bankrupt crypto lender Genesis Global and its parent company, Digital Currency Group (DCG).
• FTX had filed an objection to the settlement talks and demanded clarity on their claims.
• Genesis plans to update its reorganization plan which will be subject to creditor voting once filed.

FTX Excluded From Genesis Bankruptcy Mediation

A US Bankruptcy Judge has ruled against FTX’s inclusion in the mediation between now-bankrupt crypto lender Genesis Global and its parent company, Digital Currency Group (DCG). The proposal will serve as the foundation for a Chapter 11 bankruptcy plan to repay Genesis’ many creditors.

FTX Objects to Settlement Talks

FTX had filed an objection to the settlement talks and demanded clarity on their claims. However, Judge Lane emphasized the need for confidentiality during mediation, and said that shortening the process would not expedite the case.

Genesis To Present Revised Proposal

Genesis now plans to update its reorganization plan, which will be subject to creditor voting once filed. Judge Lane will then take these votes into account when deciding whether to approve the proposal.

Genesis Disputes $3.9 Billion Claim

                                                                                                                                                                                                                                        Genesis disputes FTX’s claim of owing $3.9 billion, and has requested that an estimation is conducted to determine the exact amount. That request will reportedly be considered by Judge Lane at another hearing later this year.

FTX Recovering Assets

FTX, which filed for bankruptcy last year, has worked extensively to recover assets that it owes creditors. In April this year, the exchange’s new management said it had successfully recovered more than $7.3 billion in cash and liquid crypto assets, while also floating the idea of restarting the exchange business in order maximize value for remaining stakeholders