{"id":2545187,"date":"2023-06-05T18:41:05","date_gmt":"2023-06-05T22:41:05","guid":{"rendered":"https:\/\/platoai.gbaglobal.org\/platowire\/genesis-receives-plan-extension-and-ftx-excluded-from-mediation-according-to-judges-ruling\/"},"modified":"2023-06-05T18:41:05","modified_gmt":"2023-06-05T22:41:05","slug":"genesis-receives-plan-extension-and-ftx-excluded-from-mediation-according-to-judges-ruling","status":"publish","type":"platowire","link":"https:\/\/platoai.gbaglobal.org\/platowire\/genesis-receives-plan-extension-and-ftx-excluded-from-mediation-according-to-judges-ruling\/","title":{"rendered":"Genesis Receives Plan Extension and FTX Excluded from Mediation, According to Judge’s Ruling"},"content":{"rendered":"

In recent news, Genesis, a cryptocurrency lending platform, has received a plan extension and FTX, a cryptocurrency derivatives exchange, has been excluded from mediation, according to a judge’s ruling. This ruling has significant implications for both companies and the wider cryptocurrency industry.<\/p>\n

Firstly, let’s take a closer look at Genesis. The company provides institutional investors with the ability to borrow and lend cryptocurrencies such as Bitcoin and Ethereum. In March 2020, Genesis filed for Chapter 11 bankruptcy protection due to a significant drop in the value of its collateral. However, the company has since been working on a plan to restructure its debt and emerge from bankruptcy.<\/p>\n

The recent ruling by Judge Martin Glenn of the US Bankruptcy Court for the Southern District of New York has granted Genesis an extension until September 30th to file its plan of reorganization. This extension will give the company more time to negotiate with its creditors and come up with a viable plan to repay its debts.<\/p>\n

This news is significant for the cryptocurrency industry as it shows that even established companies such as Genesis can face financial difficulties. It also highlights the importance of proper risk management in the cryptocurrency space, as the volatile nature of these assets can lead to sudden drops in value.<\/p>\n

Now let’s turn our attention to FTX. The company is a popular cryptocurrency derivatives exchange that offers futures, options, and other trading products. In May 2021, FTX was sued by a group of traders who alleged that the exchange had engaged in market manipulation and violated US securities laws.<\/p>\n

The case was initially set to go to mediation, where both parties would attempt to reach a settlement outside of court. However, Judge Denise Cote of the US District Court for the Southern District of New York has now ruled that FTX will be excluded from mediation. This means that the case will proceed to trial, which could have significant implications for the wider cryptocurrency industry.<\/p>\n

If FTX is found to have engaged in market manipulation or violated securities laws, it could lead to increased regulatory scrutiny of cryptocurrency exchanges. This could have a chilling effect on the industry as a whole, as exchanges may become more cautious in their operations to avoid similar legal action.<\/p>\n

In conclusion, the recent rulings regarding Genesis and FTX highlight the challenges and risks facing the cryptocurrency industry. While the industry has seen significant growth and adoption in recent years, it is still a relatively new and untested space. As such, companies operating in this space must be vigilant in their risk management and compliance efforts to avoid financial difficulties and legal action.<\/p>\n