The process of mediation can only begin once all parties involved in the Genesis Bankruptcy agree on a mediator and officially request the U.S. bankruptcy court’s approval.
Lawyers for the bankrupt crypto lender, Genesis Global, said during a hearing on Friday that the company, along with its creditors and other parties, has agreed to a 30-day period of mediation. However, the mediation process will only start once a mediator is appointed by all parties involved.
Earlier this week, Genesis Global, which is going through bankruptcy, asked a U.S. bankruptcy court to appoint a mediator to help in the negotiation process between Genesis and its owner, Digital Currency Group (DCG). DCG is also the parent company of CoinDesk. Now, all parties involved in the bankruptcy have agreed to a 30-day mediation period to discuss and agree upon the terms and conditions of DCG’s contribution to Genesis’ reorganization plan.
DCG stated that some of the creditors involved in the Genesis Global bankruptcy had decided to back out of a previous agreement. This is why Genesis Global had to request the appointment of a mediator to help resolve any disagreements and come up with a new agreement.
After FTX went bankrupt in November last year, Genesis’ lending arm stopped allowing customers to withdraw their money. Later on, Genesis filed for bankruptcy protection. In February, a lawyer for Genesis said that the company’s owner, DCG, was planning to sell Genesis’ platform for trading and lending cryptocurrency.
