Genesis Judge Rejects FTX Demand to Join Crypto Bankruptcy Talks
- Genesis wins more time to negotiate deal, develop payout plan
- FTX, Genesis are battling in court over a $3.9 billion claim
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FTX Trading Ltd. cannot join confidential mediation sessions between bankrupt crypto lender Genesis Global Holdco and its parent company Digital Currency Group, a judge ruled Monday.
US Bankruptcy Judge Sean Lane declined to open the settlement talks to FTX, which is also in bankruptcy and claims that Genesis owes it $3.9 billion. Instead, Lane gave Genesis, a group of its biggest creditors and DCG more time to come up with a revised payout proposal. Any agreement would form the basis of a Chapter 11 bankruptcy plan to pay hundreds of thousands of Genesis creditors.