FTX Debtors Object to Genesis’ ‘Critical’ Claims Estimate of ‘$0.00’

Just a month after bankrupt cryptocurrency exchange FTX sought $4 billion from similarly bankrupt cryptocurrency lender Genesis, it is now disputing a claim that it is not entitled to anything.

According to a court filing June 2 in a bankruptcy court in New York, the FTX debtors have objected to Genesis’ assessment that they are entitled to claims totaling “$0.00” — as stated by Genesis on June 1. in an estimation procedure.

FTX debtors claimed they were not “invited to participate” in the mediation and the motion was filed “without any prior notice to the FTX debtors.”

FTX reiterated that the zero-dollar claim estimate outlined in the motion was deemed “critical” by the Genesis debtors to avoid delays and move forward immediately with the “confirmation of a Chapter 11 plan.”

FTX debtors refuted a statement from Genesis debtors that they were working with “all parties” of interest to create a plan structure. It stated:

“The mediation is a waste of estate resources without including the FTX debtors and should not proceed without the involvement of the FTX debtors.”

As recently as May 3, lawyers for FTX demanded nearly $4 billion from Genesis in a New York bankruptcy court, under bankruptcy laws that allow for the recovery of “avoidable transfers” that occur in a 90-day period before a company goes bankrupt. .

The FTX debtors filed a motion for relief from the suspension – asking the court to lift the automatic suspension and suspend the legal proceedings against Genesis when it filed for bankruptcy.

It was asked that the motion be heard by the court on June 15.

Related: SBF wants to subpoena documents from the old law firm FTX/Alameda to use in its defense