Snyder, chair of the firm’s bankruptcy department, said it's unknown right now how much of a "haircut" Genesis' creditors could suffer. A haircut refers to the lower-than-market value placed on an asset being used as collateral for a loan.

The Genesis companies' bankruptcy filings included a plan but not a “disclosure statement,” which typically includes what's in the plan, Snyder said.

"The issue is, what is the value of the collateral?" he said. It's one thing if the collateral is cash, real estate or marketable securities. But when it comes to crypto, "it's very difficult to tell what the markets are. For example, if they're holding FTT coins, we know that's going to have very limited value. So we just need to understand what kind of crypto they're holding or the kind of collateral they're holding," Snyder said, referring the token issued by the failed FTX crypto exchange.