FTX borrowers dispute Genesis’ estimate

Bankrupt cryptocurrency exchange FTXbankrupt crypto credit institution GenesisJust one month after demanding $4 billion from .

New York Bankruptcy Courtheld on 2 June in to the application According to the report, FTX borrowers disputed Genesis’ estimate that they were entitled to “$0.00” claims, which it stated in an estimation procedure motion submitted on June 1.

FTX borrowers claimed that they were not involved in the mediation process and were not given any prior notice prior to filing the petition. In fact, FTX debtors denied a statement made by Genesis, which claimed that FTX debtors were informed throughout the trial, with the following words:

FTX Borrowers were not invited to participate in mediation, although Genesis Borrowers declared in the Forecasting Procedures Bill that they were working quickly with all parties involved to establish a plan structure.

It reiterated, as outlined in the resolution, that the zero demand forecast is seen by Genesis borrowers as critical to avoid any delays and to move forward promptly with the approval of the Chapter 11 plan.

FTX borrowers dispute Genesis' estimate
Subpoena filed in the United States Bankruptcy Court for the Southern District of New York on June 2.

FTX borrowers and recent events

Noting that FTX borrowers are by far the largest unsecured creditors in Genesis Borrowers Chapter 11 cases, it is crucial that they participate in mediation:

Mediation is a waste of real estate resources without the involvement of FTX Borrowers and should not proceed without the involvement of FTX Borrowers.

FTX’s lawyers had begun demanding about $4 billion from Genesis under bankruptcy laws that allow a company to recover preventable transfers that occurred within the 90-day period before it declared bankruptcy.

FTX debtors filed a petition requesting that the court lift the automatic suspension on legal action against Genesis, which is standard procedure when a company files for bankruptcy. It is stated that the request will be heard by the court on 15 June. This comes after Genesis Capital’s parent company Digital Currency Group (DCG) reported on May 9 that it has no resolution for its outstanding intercompany obligations that could help repay creditors.

During this time, DCG entered into a mediation process with Genesis in response to claims made by creditors.

In February, the company revealed a settlement plan that stipulated that Genesis creditors would get 80 percent of the funds back after the company filed for Chapter 11 bankruptcy.

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Soruce : https://tr.cointelegraph.com/news/ftx-objects-genesis-critical-claim-estimate-0-00

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