Genesis, a crypto lending platform grappling with financial challenges, is on the cusp of settling substantial claims totaling $1 billion with the now-defunct crypto hedge fund 3 Arrows Capital (3AC).
According to legal documents, Genesis is set to disburse $33 million as part of a negotiated agreement, pending court approval. This move aims to bring closure to this significant episode in the ongoing financial saga.
As indicated by reports from Coindesk, this deal, stemming from negotiations, necessitates court endorsement.
Notably, during a tumultuous period in June 2022 when 3 Arrows Capital collapsed, the crypto market encountered significant upheaval.
Genesis and Three Arrows Capital: $33M Settlement and Crypto Market Dynamics
Furthermore, the settlement currently under discussion encompasses claims linked to transactions conducted 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.”
Additionally, the proposed settlement involves a mutual exoneration of liabilities, bringing closure to both entities involved. Currently, Genesis is seeking approval from the New York bankruptcy court for the settlement, with a hearing scheduled for November 30.
The Three Arrows Capital saga holds significance in the crypto hedge fund arena. Notably, their bold market outlook is exemplified by optimistic forecasts. For instance, they predicted Bitcoin reaching $2.5 million per coin, highlighting their assertive strategy.
Three Arrows Capital’s Borrowing, Collapse, and Genesis’s $1.2B Claim
According to CoinMarketCap, Three Arrows Capital (3AC) emerged as a significant borrower from Genesis between 2020 and 2022.
The collapse of the hedge fund in June 2022 led to substantial claims against Genesis, particularly concerning transactions predating Genesis’s bankruptcy declaration in January.
Notably, in July 2022, Genesis filed claims totaling $1.2 billion against Three Arrows Capital. In recent developments, Genesis has introduced a new bankruptcy plan, revealed in early November 2023.
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