Genesis to Settle $1 Billion Claims with 3 Arrows Capital
Genesis, a crypto lender that experienced financial troubles, is on the brink of resolving $1 billion in claims with the now-defunct 3 Arrows Capital (3AC) hedge fund. According to court documents, Genesis will pay $33 million to bring this significant chapter to a close. The deal, resulting from negotiations, is contingent on court approval.
The proposed agreement includes a mutual release of liability, providing resolution for both parties involved. Genesis is seeking approval from the New York bankruptcy court for the settlement, with a hearing scheduled for November 30.
Three Arrows Capital Saga and Genesis
Three Arrows Capital (3AC) was a major borrower from Genesis between 2020 and 2022. The hedge fund’s collapse in June 2022 led to substantial claims against Genesis, related to transactions made before Genesis declared bankruptcy in January. In July 2022, Genesis filed claims totaling $1.2 billion against Three Arrows Capital. Recent developments show that Genesis has presented a new bankruptcy plan in early November 2023.
Hot Take: The Significance of the Genesis-3AC Settlement
The impending settlement between Genesis and Three Arrows Capital marks a pivotal moment in the crypto lending and hedge fund space. With $1 billion in claims at stake, the outcome of this agreement could have far-reaching implications for both parties involved and may set a precedent for future disputes within the industry.
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