FTX Objects To Mediation Extension Proposal From Genesis Global

• FTX and its affiliates have objected to Genesis Global’s proposed extension to its mediation period.
• The bankrupt crypto exchange has called out Genesis for not including it in the mediation process.
• FTX has also taken issue with Genesis estimating its $3.9 billion claim at $0.00.

Bankrupt crypto exchange FTX and its affiliated debtors have filed an objection to Genesis Global Holdco’s proposal to extend its mediation period. With its latest filing in the U.S. Bankruptcy Court for the Southern District of New York, FTX joined more than a dozen parties that are owed by bankrupt crypto lender Genesis.

As per a report by Bloomberg, FTX claimed to be the largest creditor of Genesis Global Holdco, which filed for Chapter 11 bankruptcy in January this year. FTX stated in its court filing that it was not on board with Genesis’ plan to extend its mediation period, during which the latter planned to find a resolution and confirm its Chapter 11 plan.

FTX also called out Genesis for not including it in the court-appointed mediation process. FTX accused the bankrupt crypto lender of hand-picking the participants of the mediation process, which included its parent company Digital Currency Group (DCG), and the Winklevoss-owned Gemini Exchange, which is owed nearly $1 billion.

“The mediation is a waste of estate resources without the inclusion of the FTX Debtors and should not continue without the FTX Debtors’ involvement,” FTX stated in the court filing. The Bahamas-based exchange noted that Genesis’ mediation process was shrouded in secrecy with details kept from even its largest creditor.

FTX’s latest court filing also responded to a motion filed by Genesis on Thursday, which sought to mark FTX’s claims down to zero, claiming that it was in the interest of expediting the confirmation of a Chapter 11 plan. FTX took issue with having $3.9 billion worth of unliquidated claims estimated at $0.00 by Genesis.