Crypto lender Genesis, which faced financial difficulties, is poised to settle $1 billion in claims with the now-defunct crypto hedge fund 3 Arrows Capital (3AC). Court documents reveal that Genesis will pay $33 million to bring closure to this significant chapter. This deal, resulting from negotiations, is subject to court approval.
As reported by Coindesk, the deal is a result of negotiations and requires court approval. As of June 2022, when 3 Arrows Capital collapsed, it began a challenging period for the crypto market. The settlement covers claims related to transfers made before Genesis filed for bankruptcy in January.
The filing read, “The 3AC Debtor shall receive an allowed general unsecured claim against Genesis for $33,000,000 in complete satisfaction of the more than 1 billion dollars in claims asserted against each of the Genesis Debtors.”
The proposed agreement includes a mutual release of liability, providing a resolution for both parties involved. Genesis is seeking approval from the New York bankruptcy court for the settlement, and a hearing is scheduled for November 30.
The Three Arrows Capital saga is notable, given its prominence in the crypto hedge fund space. Their extreme bullishness towards the market, exemplified by bold predictions like Bitcoin reaching $2.5 million per coin, underscores their aggressive approach.
Three Arrows Capital (3AC) emerged as one of the significant borrowers from Genesis between 2020 and 2022, according to CoinMarketCap. The hedge fund faced a collapse in June 2022, leading to significant claims against Genesis. These claims pertain to transactions made before Genesis declared bankruptcy in January. Notably, in July 2022, Genesis filed claims amounting to $1.2 billion against Three Arrows Capital. In recent developments, Genesis has presented a new bankruptcy plan in early November 2023.