TechFlow news — U.S. Judge Sean Lane decided during Monday's bankruptcy hearing to extend the mediation period between cryptocurrency lending firm Genesis and its creditors. Originally set to expire last month, the deadline has now been extended to June 16.
Earlier this year, negotiations between the two parties had broken down. To facilitate talks, Judge Lane appointed a mediator on May 1. Regarding whether shortening the mediation timeline could accelerate case resolution, Judge Lane stated, "Further mediation often leads to a quicker resolution of the case."
During the hearing, the judge rejected Genesis' request to enter into settlement discussions with FTX. FTX claims Genesis owes it $3.9 billion, while Genesis argues it holds no liability toward FTX and asked the court to estimate the exact amount it might owe. The judge granted all parties additional time to prepare a revised proposal outlining payments to Genesis creditors.
Next week’s hearing will address the specific amount Genesis owes FTX. Previously, Genesis attempted to value FTX’s unsettled claim at zero.
