Bankrupt Crypto Companies Are Fighting Over a Dwindling Pot of Money

Legal experts, though, say they’re skeptical of FTX’s chances. Marc Powers, adjunct professor of law at Florida International University, who acted as counsel in the liquidation of Bernie Madoff’s, says that the exchange is attempting to “jump ahead of the other creditors” in the GGC bankruptcy. “Why should the FTX bankruptcy, or FTX as a potential creditor of Genesis, be more important than any other?” he asks.

“I don’t think the Genesis bankruptcy court will grant the motion of FTX,” Powers says. “Given the size of the claim, I think it would be extremely disruptive.” If the case proceeds, GGC will likely argue that the $1.8 billion in loan repayments were made in the ordinary course of business, which would exempt them from being recalled. There are also questions, Powers and others point out, posed by FTX’s failure to specify the dates of the withdrawals in its filing.

The only mercy for creditors, says Rosenberg, is that both FTX and GGC—as bankrupt entities—have a fiduciary duty to reach an agreement as quickly as possible. “Everybody’s goal is to make a distribution to creditors. The more you fight, the more it will deplete the estate,” he says. “Both parties have an interest in reaching a resolution swiftly.”

Indonesia Berita Terbaru, Indonesia Berita utama

Similar News:Anda juga dapat membaca berita serupa dengan ini yang kami kumpulkan dari sumber berita lain.

Crypto shares tumble as Binance SEC lawsuit ripples through industryCryptocurrencies and shares in crypto and blockchain-related companies tumbled on Monday after the U.S. securities regulator sued crypto exchange Binance, another blow to the industry.
Sumber: Reuters - 🏆 2. / 97 Baca lebih lajut »

US companies, nudged by Black employees, have stepped up donations to HBCUsNatalie Coles will never forget receiving an unexpected phone call in 2020. On the line was Virginia-based Dominion Energy, offering to give money to Wilberforce University, the small historically Black college where she is in charge of fundraising. Historically Black colleges and universities, which had seen giving from foundations decline in recent decades, lately are benefiting from an increase in gifts, particularly from corporations and corporate foundations.
Sumber: YahooNews - 🏆 380. / 59 Baca lebih lajut »

US companies, nudged by Black employees, have stepped up donations to HBCUs - New York Amsterdam NewsNatalie Coles will never forget receiving an unexpected phone call in 2020. On the line was Virginia-based Dominion Energy, offering to give money to Wilberforce University, the small historically Black college where she is in charge of fundraising.
Sumber: NYAmNews - 🏆 269. / 63 Baca lebih lajut »