FTX Trading Ltd. and its affiliates joined a smattering of other creditors of bankrupt crypto lender Genesis Global Holdco in objecting to extending court-mediated settlement talks, according to a court filing, Bloomberg News reported. Claiming to be a major Genesis creditor, FTX said it hadn’t been invited to court-appointed mediation that went on in May and included Genesis, its parent company Digital Currency Group and creditors such as crypto exchange Gemini Trust Co. FTX also said it was caught off guard when Genesis filed on Thursday to have FTX’s unliquidated claims estimated at zero. FTX says it is owed $3.9 billion. Genesis said that throwing out the FTX claims “is critical to avoid undue delay in the timing and amount of creditor distributions, and to expeditiously pursue confirmation of a chapter 11 plan.” The objection adds yet another complication to the attempts for a settlement between DCG, Genesis and its creditors. FTX is joining more than a dozen other individual Genesis creditors who have filed their objections to extending the mediation. Genesis is seeking to continue the talks through June 16, and claims to have the support of DCG and Gemini. A hearing on the extension is scheduled for Monday. Because FTX hasn’t been included, “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 said in its filing.
