The ongoing legal battle between Genesis and FTX is causing a delay in the payout plan for creditors. Genesis, a crypto lender, filed for bankruptcy in January 2023. FTX, a crypto exchange, filed for bankruptcy in November 2022.
Genesis claims that FTX owes it $2 billion. FTX claims that Genesis owes it $3.9 billion. The two companies are currently in mediation, but a settlement date is uncertain.
The judge overseeing Genesis’ bankruptcy case expects the payout plan to be delayed. The judge wants to ensure fair treatment of all creditors, pending resolution of the Genesis-FTX dispute.
The delay is unfavorable for both companies’ creditors. Losses are already being faced, and the delay exacerbates the situation. Some creditors may not receive the full amount owed to them.
The legal battle between Genesis and FTX reflects the turmoil in the cryptocurrency market. The market has been declining for months, resulting in numerous crypto companies filing for bankruptcy.
The Genesis-FTX case highlights the legal challenges faced by the industry. The duration of the legal battle is uncertain, but the delay in the payout plan harms creditors of both companies. Overall, the case underscores the tumultuous state of the cryptocurrency market.
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