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Bankruptcy Judge Extends Genesis’ Mediation Period, Denies Entry To FTX

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Bankruptcy Judge Extends Genesis’ Mediation Period, Denies Entry To FTX 14
  • The judge overseeing Genesis Global’s bankruptcy case has extended its mediation period.&
  • FTX’s request to join the court-appointed mediation talks has been denied by bankruptcy Judge Sean Lane.&
  • Arguments on FTX’s $3.9 billion claim, which was previously denied by the bankrupt crypto lender, will be heard next week.&

In a major victory for Genesis Global Holdco, the judge overseeing its bankruptcy case has granted its request for an extension of the court-appointed mediation process. The bankrupt crypto lender’s confidential mediation sessions, which were attended by its parent company Digital Currency Group (DCG) and creditors, including the Winklevoss-owned crypto exchange Gemini, have been extended in order for the parties to come up with a revised plan to pay its creditors.&

Genesis Judge Denies FTX’s Request To Join Mediation Talk

According to a report by Bloomberg, bankruptcy Judge Sean Lane has allotted more time for Genesis to come up with a payout plan along with some of its biggest creditors including Gemini. The outcome of this court-appointed mediation period, which has been extended to June 16, 2023, would form the basis of a Chapter 11 bankruptcy plan that would dictate the repayment to the bankrupt crypto lender’s creditors. 

There will be a certain amount of radio silence because mediation needs that to work. Shortening the mediation does not shorten the case.”

Bankruptcy Judge Sean Lane

Judge Lane further ruled that FTX, which claims to be Genesis’ largest unsecured creditor with a whopping $3.9 billion in outstanding claims, cannot join the mediation process which began last month. Genesis previously estimated FTX’s multi-billion dollar claim at zero and asked the judge to set up a months-long process to recalculate the value of FTX’s claims. The bankruptcy judge will deliver a ruling in this matter at a hearing scheduled for next week. 

The bankrupt crypto lender also owes more than $1.1 billion to Gemini’s Earn Users. Genesis’ request for an extension of the mediation period drew opposition from some of the Earn Users last week. However, Gemini assured its customers that an extension of the mediation period would not cause any delay.&


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