FTX and its associated debtors have filed several objections to Genesis’s bankruptcy proceedings and recovery plans, as stated in a court filing on June 2.
FTX, which previously aimed to recover around $4 billion from Genesis’s bankruptcy case, expressed dissatisfaction with Genesis estimating FTX debtors’ claims at $0.00 in a motion on June 1. FTX debtors, asserting themselves as the largest unsecured creditors in the case, did not confirm if they still intend to recover $4 billion but emphasized that Genesis debtors had previously acknowledged their significant position.
Genesis justified the $0.00 estimate as a means to avoid delays in pursuing their undisclosed Chapter 11 recovery plan, a plan that has been kept highly private. FTX debtors, feeling excluded from the mediation process despite Genesis’s claims of involving all parties, criticized the secrecy surrounding the plan. They urged for the abandonment of Genesis’s mediation process, considering it a waste of resources without FTX’s participation. Additionally, FTX debtors expressed discontent over Genesis and its debtors filing their latest motion on June 1 without any prior notice.
In response to Genesis’s perceived neglectful decisions, FTX and its debtors have requested relief from the stay, which would have prevented them from taking action against Genesis in FTX’s own bankruptcy case. If the relief is granted, FTX debtors plan to liquidate their claims against Genesis Global Capital as part of FTX’s bankruptcy proceedings. A hearing for FTX debtors’ motion is scheduled for June 15.