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Genesis Bankruptcy Parties Agree to 30-Day Mediation Period

The process can start once the parties agree on a mediator and submit an order to the U.S. bankruptcy court.

Updated Apr 28, 2023, 2:40 p.m. Published Apr 28, 2023, 2:01 p.m.

Genesis Global Trading, along with its creditors and other parties, has agreed to a 30-day mediation period pending the appointment of a mediator, lawyers for the bankrupt crypto lender said during a court hearing on Friday.

The agreement follows a request made by Genesis Global to the U.S. Bankruptcy Court for the Southern District of New York earlier in the week to appoint a mediator to assist in the terms and conditions of Genesis owner Digital Currency Group's contribution to the debtors' reorganization plan. DCG also owns CoinDesk.

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DCG said the request reflected a decision by a subset of creditors to walk away from a previous agreement.

Following FTX's collapse last November, Genesis' lending arm halted withdrawals, and the firm filed for bankruptcy protection in January. In February, a lawyer for Genesis said DCG was looking to sell the firm's crypto lending and trading platform.

Genesis Global Trading Bankruptcy Digital Currency Group

Sandali Handagama

Sandali Handagama is CoinDesk's deputy managing editor for policy and regulations, EMEA. She is an alumna of Columbia University's graduate school of journalism and has contributed to a variety of publications including The Guardian, Bloomberg, The Nation and Popular Science. Sandali doesn't own any crypto and she tweets as @iamsandali