Genesis Bankruptcy Parties Agree to 30-Day Mediation Period
The process can start once the parties agree on a mediator and submit an order to the U.S. bankruptcy court.
Apr 28, 2023 at 2:01 p.m. UTC:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/QIQFOFXKDNGXPNQLSOZWF33DAU.jpg)
(Genesis Trading, Modified by CoinDesk)
Genesis Global Trading, along with its creditors and other parties, has agreed to a 30-day mediation period pending the appointment of a mediator, lawyers for the bankrupt crypto lender said during a court hearing on Friday.
The agreement follows a request made by Genesis Global to the U.S. Bankruptcy Court for the Southern District of New York earlier in the week to appoint a mediator to assist in the terms and conditions of Genesis owner Digital Currency Group's contribution to the debtors' reorganization plan. DCG also owns CoinDesk.
DCG said the request reflected a decision by a subset of creditors to walk away from a previous agreement.
Following FTX's collapse last November, Genesis' lending arm halted withdrawals, and the firm filed for bankruptcy protection in January. In February, a lawyer for Genesis said DCG was looking to sell the firm's crypto lending and trading platform.
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Sandali Handagama is a CoinDesk reporter with a focus on crypto regulation and policy. She does not own any crypto.
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