A unit of digital asset firm Genesis won a spot on an official creditors committee in the FTX bankruptcy, a panel that may have a leading role in the biggest crypto insolvency case filed so far.
(Bloomberg) — A unit of digital asset firm Genesis won a spot on an official creditors committee in the FTX bankruptcy, a panel that may have a leading role in the biggest crypto insolvency case filed so far.
The US Trustee, a unit of the Justice Department that monitors bankruptcies, named nine creditors to the committee, according to a court filing Thursday. Judges typically rely on such groups to help shape payout plans in big, multibillion dollar bankruptcy cases.
The panels hire their own lawyers and financial advisers, conduct their own independent investigations and are involved in most negotiations in big, corporate bankruptcy cases. Their expenses are paid by the bankrupt company.
Genesis previously said it had $175 million in exposure to FTX, which forced its parent Digital Currency Group to provide the firm with a $140 million capital infusion in November. Genesis is currently attempting to raise at least $1 billion in fresh funds to avoid filing for bankruptcy.
A wing of crypto market maker Wintermute is also listed as joining the committee. Wintermute Chief Executive Officer Evgeny Gaevoy disclosed in November that it had around $55 million in assets trapped on FTX.
“The bottom line is, we reduced our exposure by mostly 50% since it’s all started,” Gaevoy told Bloomberg in a Nov. 9 interview. “Generally as a rule, we don’t hold more than 20% of our net equity on any single venue and for FTX it was actually significantly less than that.”
The members of the committee are:
- Zachary Bruch, an individual creditor represented by law firm Hunton Andrews Kurth
- Coincident Capital International, of Carson City, Nevada
- GGC International, the Bermuda affiliate of Genesis
- Octopus Information, of the British Virgin Islands
- Pulsar Global, of Hong Kong
- Larry Qian, an individual creditor
- Acaena Amoros Romero, an individual creditor
- Wincent Investment Fund PCC, of Gibraltar
- Wintermute Asia PTE, of Singapore
The case is FTX Trading Ltd., 22-11068, US. Bankruptcy Court for the District of Delaware.
–With assistance from Yueqi Yang.
(Corrects address in story originally published Dec. 15 after US Trustee filed amended court documents.)
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