As per the lawyer of Genesis Global Capital, the now-bankrupt firm is still confident about its ability to resolve creditor disputes. In fact, the lawyer made clear the company's plans to get out of bankruptcy in May 2023.
The lawyer made these comments at the Manhattan-based bankruptcy court and is representing the bankrupt Genesis Capital. The bankrupt firm is owned by a venture capital firm called the Digital Currency Group and is led by Barry Silbert.
Genesis and around two other lending companies filed for bankruptcy on the 19th of January. This comes two months after the company stopped all withdrawals initiated by the customers. And there's a connection between the collapse of the FTX and these crypto firms as well.
Last year, we already saw major crypto firms applying for bankruptcy protection, such as BlockFi, Celsius Network, and Voyager Digital.
As per the company's lawyer, they still have confidence in resolving all of their issues with the creditors. This comes at a time when the company has been in negotiations for almost two months. In fact, the lawyer also hinted towards meditation if required.
But he also passed comment on how the current situation doesn't seem to require any mediator. This comment shows that the company is very optimistic.
The other party is represented by Brian Rosen (lawyer), who is working towards claims of $1.5 billion. According to him, they are getting closer, which is still good news!
Basically, both parties are making progress which is a sign of good news for the crypto community as a whole.
Recently, the bankruptcy judge also allowed Genesis to pay its important vendors and employees. According to experts, this move is common and not unusual in bankruptcy cases.
However, the case of FTX is not as simple as the case of Genesis and other crypto firms. On that front, a heated legal battle is expected in the coming months.