Business News Report
November 13, 2023

Genesis Agrees to Pay $33 Million to Settle Three Arrows Capital’s $1 Billion Claim

In Brief

Genesis has agreed to settle Three Arrows Capital’s $1 billion claim, proposing a $33 million payment to settle court dispute.

Genesis Agrees to Pay $33 Million to Settle Three Arrows Capital's $1 Billion Claim

Genesis, a crypto lender that declared bankruptcy has reached an agreement to settle a whopping $1 billion in claims from the now-defunct crypto hedge fund Three Arrows Capital (3AC). According to recent court documents, Genesis will pay $33 million to resolve these claims, a fraction of the original amount.

The downfall of 3AC in June 2022 was a significant event in the cryptocurrency sector, marking the beginning of a prolonged ‘crypto winter.’ The claims against lender company stem from transfers made before the lender’s bankruptcy filing in January.

The settlement plan, detailed in a November 9 filing, is the result of “extensive negotiations”. It aims to resolve the more than $1 billion in claims that 3AC has levied against Genesis.

Genesis vs Three Arrows Capital

As per the settlement agreement, 3AC will receive an allowed general unsecured claim of $33 million against Genesis. This settlement is meant to fully satisfy the larger claims against Genesis. Both parties, as part of the deal, will release each other from any further liabilities.

Genesis had previously filed claims worth $1.2 billion against 3AC in July 2022, citing the hedge fund as one of its largest borrowers from 2020 to 2022.

Genesis is now seeking approval from a New York bankruptcy court to finalize this settlement. The court will schedule a hearing on November 30 to discuss the proposed settlement, deciding the next steps in the high-stakes financial resolution between the two bankrupt entities.

This development signifies a critical step in resolving the complex web of claims and debts that have entangled these major players in the crypto lending and hedge fund space, reflecting the ongoing challenges and restructuring efforts in the wake of the crypto market’s downturn.

Disclaimer

In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.

About The Author

Nik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master's degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.

More articles
Nik Asti
Nik Asti

Nik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master's degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.

Hot Stories

Lido Launches stETH With Rebases On OP Mainnet

by Alisa Davidson
October 15, 2024
Join Our Newsletter.
Latest News

Lido Launches stETH With Rebases On OP Mainnet

by Alisa Davidson
October 15, 2024

From Ripple to The Big Green DAO: How Cryptocurrency Projects Contribute to Charity

Let's explore initiatives harnessing the potential of digital currencies for charitable causes.

Know More

AlphaFold 3, Med-Gemini, and others: The Way AI Transforms Healthcare in 2024

AI manifests in various ways in healthcare, from uncovering new genetic correlations to empowering robotic surgical systems ...

Know More
Read More
Read more
Securitize Integrates With Zero Hash To Enable Purchase Of BlackRock’s BUIDL Through USDC Conversion
Business News Report Technology
Securitize Integrates With Zero Hash To Enable Purchase Of BlackRock’s BUIDL Through USDC Conversion
October 15, 2024
Gate.io Enters Strategic Partnership With Onramper For Seamless Fiat-To-Crypto Swaps
Business News Report Technology
Gate.io Enters Strategic Partnership With Onramper For Seamless Fiat-To-Crypto Swaps
October 15, 2024
Lido Launches stETH With Rebases On OP Mainnet
News Report Technology
Lido Launches stETH With Rebases On OP Mainnet
October 15, 2024
Synnax Introduces Credit Intelligence Platform, Setting New Standard In Credit Analysis And Financial Insights
Business News Report Technology
Synnax Introduces Credit Intelligence Platform, Setting New Standard In Credit Analysis And Financial Insights
October 15, 2024