FTX Debtors Have Objected To Genesis’ Critical Claims

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Just a month has passed after FTX, the bankrupt cryptocurrency exchange, sought $4 billion from Genesis, another bankrupt crypto lender, and now the FTX Debtors have been contesting a claim that it is entitled to absolutely nothing. According to a court filing on the 2nd of June, the United States Bankruptcy Court for the Southern District of New York witnessed the debtors objecting to the estimation put forward by Genesis that they were entitled to claims that had a total of $0.00, which Genesis claimed in an estimation procedures motion that was filed on 1st June.

FTX Debtors Have Clashed With Genesis Debtors

The FTX debtors also alleged that they were completely uninvolved in the process of mediation, and were not provided with any advance notice before the motion had been filed. The debtors also refused to take in a statement from Genesis where it was suggested that they were informed throughout the proceedings. It was mentioned again that the nil claim estimation, as had been outlined through the motion, was deemed entirely critical by the debtors of Genesis to prevent any delays, and so that they could move forward promptly with the confirmation of the Chapter 11 plan. 

The filing further argued that the FTX debtors had been, by far, the largest unsecured creditors in the Chapter 11 cases of the Genesis debtors and that they needed to participate in this mediation. As recently as 3rd May, the lawyers for FTX had been seeking almost $4 billion from Genesis, under the bankruptcy laws, which allowed it to recoup the avoidable transfers that had taken place under 90 days before the company declared complete bankruptcy.