Genesis, Three Arrows Capital Seeks Court's Approval To Settle For $33M Instead Of $1B

Crypto lender Genesis announced its agreement to pay $33 million to Three Arrows Capital (3AC) to settle the hedge fund's $1 billion in claims.

This news comes on the heels of Benzinga’s Future Of Digital Assets Event in New York scheduled on Nov.14. Attend and learn more about bankrupt crypto lenders in 2023 and their impact on the digital asset landscape. The gathering is seen as pivotal for the digital asset community. The event will spotlight the latest trends, innovations and challenges in the digital asset realm.

What Happened: The court filing stated, “The 3AC Debtor shall receive an allowed general unsecured claim against Genesis in the amount of $33,000,000 in full and complete satisfaction of the more than $1 billion dollars in claims asserted against each of the Genesis Debtors.”

The company will also give up its rights on several AVAX and NEAR tokens that remain unspecified in the deal.

A hearing for the filing will be held in the U.S. Bankruptcy Court for the Southern District of New York on Nov. 30, 2023, while responses or objections, if any, should be filed before Nov. 24, 2023.

With this, the two parties have mutually released each other from the liability.

This deal came after several negotiations between the parties. Genesis is seeking a New York bankruptcy court's approval to settle the claims. The company decided to settle out of court to avoid risks and the expenses of extended litigations. It will assist the bankrupt firm to make timely payouts and resume growth.

Also Read: Here Are The Notable Crypto Fallouts Over The Last Two Years

Background: 3AC was one of Genesis's largest borrowers from 2020 to 2022, CoinMarketCap reported. In June 2022 the hedge fund collapsed and the claims against Genesis are related to the transfers made before the latter’s bankruptcy in January. In July 2022, Genesis also filed for $1.2 billion in claims against 3AC.

In early November 2023, Genesis submitted a new bankruptcy plan which plans to liquidate assets and not sell or reorganize them. The U.S. SEC Trustee raised objections against the amendments.

Read More: New York Attorney General Files Lawsuit Against Genesis, Gemini, DCG For Defrauding Investors of $1B, Urges Ban

Industry titans BlackRock, DTCC, OCC, State Street, Société Générale, Hedera, Citi, BMO, Northern Trust, Citibank, Amazon, S&P Global, Google, Invesco and Moody’s will join Benzinga on Nov. 13 for Fintech Deal Day and Nov. 14 for Future of Digital Assets. Secure a spot here to join them.

Photo: Pixabay