FTX’s lawyers want money paid by FTX’s debtors to Genesis 90 days before FTX’s re-bankruptcy.
Genesis can be exempted from paying FTX With a “normal course of commercial defense,” Ram Alawi, CEO of Wealth Management at Lumeda, said in a recent interview.
Attorneys must prove business transfer with FTX
Bankruptcy attorney You might argue that FTX pushed Genesis through its B2B practices Normal to mitigate the conditions of the refund request.
Not likely to be the future of FTX, John J Ray III She opposes that defense, according to the law firm Bernstein-Burkeley.
practically, Genesis, creditor, claims that FTX payments must be refuted I deviated from normal debt collection practices.
According to Bernstein, The courts were inconsistent in interpretation “normal” transactions They may need to examine the business practices of companies similar to Genesis to assess potential deviations.
As a result, the creditor may appoint an expert witness familiar with intercompany debt collection practices.
If FTX wins the case, Genesis can still receive the money as a creditor in a somewhat lengthy process. The courts will hear the FTX recovery case on May 25th.
DCG can negotiate an out-of-court settlement
Genesis has to take note of the imminent default of its parent company, Digital Currency Group.
In January, DCG CEO Barry Silbert He said The company owes its subsidiary $447.5 million USD and 4,550 BTC worth about $127 million at the time of writing.
According to Gemini Exchange, The company needs to restructure its debt or pay the money back before May 9th to avoid breach.
DCG also owes Genesis $1.1 billion in a note due 2032.
Gemini and DCG have agreed to mediate To compensate Gemini Earn customers. Genesis gained interest in Earn’s clients, with Gemini serving as an agent.
Reportedly, Genesis owes Gemini approximately $766 million.
Ahluwalia say what DCG can negotiate an out-of-court settlement if it does not meet its obligations by May 9.
This process may result in delayed payments to major creditors of Genesis, who owe about $3.4 billion.
As one of the cryptocurrency shadow banks, Genesis lent $130.6 billion during the 2021 bull run.
In addition to FTX, The lender also funded Alameda researchsignature commerce Quantum is at the heart of the crypto empire that fell under Sam Bankman-Fried.
Genesis Asia Pacific also canceled money owed by Three Arrows Capital last year.
Cryptocurrency brokerage Voyager Digital has borrowed funds from Alamedawhich has borrowed billions from FTX, is secured by illiquid FTT coins.
Disclaimer
Disclaimer: In accordance with the Trust Project’s guidelines, BeInCrypto is committed to fair and transparent reporting. This news article aims to provide accurate and timely information. However, readers are advised to independently check the facts and consult a professional before making any decisions based on this content.
“Beeraholic. Friend of animals everywhere. Evil web scholar. Zombie maven.”