FTX debtors object to Genesis’ ‘critical’ claims estimate of ‘$0.00’

Simply a month after insolvent cryptocurrency exchange FTX looked for $4 billion from the likewise bankrupt crypto lending institution Genesis, it is now contesting a claim that it is entitled to nothing.According to a June 2 court filing in the United States Bankruptcy Court for the Southern District of New York, FTX debtors have actually objected to Genesis estimate that they are entitled to claims totaling “$0.00,” which Genesis stated in an estimation procedures motion submitted on June 1. The FTX debtors alleged they were uninvolved in the mediation procedure and were not given “any advance notice” before the motion was filed.FTX debtors even refuted a statement from Genesis recommending they were kept notified throughout the procedures:”The FTX Debtors have actually not been welcomed to get involved in the mediation despite the Genesis Debtors representation in the Estimation Procedures Motion that they are “working expeditiously with all parties in interest to develop a plan structure.”As just recently as May 3, lawyers for FTX were seeking practically $4 billion from Genesis, under insolvency laws allowing it to recover “avoidable transfers” that occur in a 90-day duration before a company declares bankruptcy.FTX debtors have actually sent a motion seeking relief from the stay– a request for the court to raise the automatic suspension on legal procedures versus Genesis– which is a standard procedure when a firm files for bankruptcy.The movement is set to be heard by the court on June 15.

Thank you for reading this post, don't forget to subscribe!