Last Updated on November 14, 2023 by Bitfinsider
According to court filings, bankrupt crypto lender Genesis has agreed to resolve $1 billion in claims by defunct crypto hedge fund Three Arrows Capital (3AC) with a payment of $33 million. The collapse of the hedge fund in June 2022 was the first storm in a long crypto winter, and its claims against Genesis relate to transactions done prior to Genesis’ own bankruptcy in January.
The agreement, detailed in a Nov. 9 document, is the result of “extensive negotiations” between the parties, and Genesis is seeking approval from a New York bankruptcy court to settle the claims.
“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,” according to the agreement, which also states that the parties will “mutually release each other from liability.” Genesis had also filed $1.2 billion in claims against 3AC in July 2022, and the hedge fund was listed as one of its “largest borrowers between 2020 and 2022, up until the time of its collapse” in last week’s filing.
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