FTX debtors contest Genesis’ ‘significant’ claim of ‘$0.00’

Just a month after bankrupt cryptocurrency exchange FTX was seeking $4 billion from bankrupt crypto lender Genesis, it is now claiming it is entitled to nothing.

According to the court of June 2 Admission In New York bankruptcy court, FTX has raised an objection to Genesis’s estimate that its debtors are entitled to claims totaling ‘$0.00’ – which was filed on June 1 in a motion to assess process.

The FTX Debtors alleged that they were not “invited to participate” in the arbitration and that the motion was filed “without any advance notice to the FTX Debtors”.

FTX reiterated that the zero-dollar claim estimate, as outlined in the motion, was deemed “critical” by the Genesis debtors to prevent any delay, and to proceed immediately with “confirmation of the Chapter 11 plan.”

FTX countered that the origination debtors worked with “all parties” of interest to create a plan structure. It was said:

“Arbitration without the involvement of the FTX Debtors is a waste of estate resources and should not continue without the participation of the FTX Debtors.”

As early as May 3, FTX’s attorneys sought approximately $4 billion from Genesis in New York bankruptcy court under bankruptcy laws to recoup “avoidable transfers” that occurred in the 90-day period before the company declared bankruptcy. allows for.

The FTX debtors have filed a motion for relief from the moratorium—requesting that the court lift the automatic moratorium, barring legal proceedings against Origin when it files for bankruptcy.

It is requested that the motion is scheduled to be heard by the Court on June 15.

Connected: SBF seeks documents from old FTX/Alameda law firm to use in its defense