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