Genesis Finalizes a $33 Million Settlement for Three Arrows Capital's $1 Billion Claim

Genesis, a crypto lender The company, which faced bankruptcy, has managed to strike a deal to settle a significant $1 billion in claims made by the now-defunct crypto hedge fund. Three Arrows Capital (3AC) Recent court filings indicate that Genesis plans to pay $33 million to address these claims, which is only a small portion of the total amount originally sought.

The collapse of Three Arrows Capital in June 2022 was a pivotal moment for the cryptocurrency market, marking the onset of a protracted period of decline commonly referred to as 'crypto winter.' The claims against Genesis arose from transactions carried out prior to its bankruptcy declaration in January.

The details of the settlement agreement, filed on November 9, highlight the outcome of extensive negotiations aimed at resolving over $1 billion in claims against Genesis. 3AC has levied against Genesis.

Genesis vs Three Arrows Capital

According to the settlement, Three Arrows Capital is entitled to a recognized general unsecured claim of $33 million against Genesis. Genesis This resolution is designed to comprehensively address the outstanding claims against Genesis, with both parties agreeing to release each other from any future liabilities as part of the deal.

Previously, Genesis filed claims totaling around $1.2 billion against Three Arrows Capital back in July 2022, naming the hedge fund as one of its largest borrowers during the period from 2020 to 2022.

Genesis is now in the process of seeking approval from a court in New York to finalize this settlement, with a hearing scheduled for November 30 to further discuss the agreement and determine the next steps in this complex financial matter between the bankrupt entities. bankruptcy This agreement represents a crucial step towards untangling the intricate network of claims and debts involving these key figures in the cryptocurrency lending and hedge fund sectors, reflecting the ongoing struggles and restructuring efforts following the downturn in the crypto market.

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