FTX debtors object Genesis' 'critical' claim estimate of '$0.00'
Just a month after bankrupt cryptocurrency exchange FTX was seeking $4 billion from the also bankrupt crypto lender Genesis, it is now contesting a claim that it is entitled to nothing.
According to a June 2 court filing in a New York Bankruptcy Court, the FTX debtors have raised an objection to Genesis’ estimation that they are entitled to claims totalling ‘$0.00’ – as stated by Genesis in an estimation procedures motion on June 1.
FTX debtors alleged they were not “invited to participate” in the mediation and the motion was filed “without any advance notice to the FTX debtors.”
It was reiterated in the filing that the zero-dollar claim estimation, as outlined in the motion, was deemed “critical” by the Genesis debtors to prevent any delays, and promptly move forward with the “confirmation of a Chapter 11 plan.”
FTX debtors refuted a statement made by Genesis debtors that they worked with “all parties” of interest to create a plan structure.
It was further argued that the FTX debtors "are by far the largest unsecured creditors in the Genesis Debtors' Chapter 11 cases" and crucial that they participate in the mediation, noting:
It was only on May 3 that lawyers for FTX were seeking almost $4 billion from Genesis in a New York Bankruptcy Court, under bankruptcy laws which allow it to recoup “avoidable transfers” that occur in a 90-day period before a company declares bankruptcy.
The FTX debtors have filed a motion for relief from the stay – requesting that the court lift the automatic stay, pausing legal proceedings against Genesis, when it filed for bankruptcy.
It was requested that the motion is set to be heart by the court on June 15.
Related: SBF wants to subpoena documents from old FTX/Alameda law firm to use in his
Read more on cointelegraph.com
