Genesis Seeks Court Approval for Settlement Agreement
In a recent court filing, Genesis, the cryptocurrency trading lender affected by the collapse of Three Arrows Capital (3AC) and FTX last year, is seeking court approval for a settlement agreement. The agreement would allow 3AC to have a general unsecured claim of $33 million against Genesis, significantly lower than the initial $1 billion claim.
Another Step in the Process
Genesis emphasizes that 3AC’s $1 billion claims were the largest in Chapter 11 cases related to the FTX exchange. The agreement also requires Genesis to waive its rights to an undisclosed quantity of AVAX tokens from Avalanche and NEAR tokens from Near Protocol. Additionally, the bankrupt entities will release each other from any outstanding liabilities. Claim numbers for various entities will no longer be recognized in legal proceedings.
An Upcoming Hearing
The debtors submitted a joint Chapter 11 Bankruptcy plan on Jan. 20, followed by an amended joint Chapter 11 plan and disclosure statement on Nov. 7. The bankruptcy court has scheduled a hearing to evaluate the approval of the disclosure statement on Nov. 13.
As Genesis seeks court approval for a settlement agreement with Three Arrows Capital (3AC) following its collapse, it highlights the complexities of legal proceedings in the cryptocurrency industry. The proposed agreement, which significantly reduces 3AC’s initial claim against Genesis, reflects ongoing efforts to navigate the aftermath of significant financial disruptions within the sector. With upcoming hearings set to determine the approval of bankruptcy plans and disclosure statements, the case underscores the importance of clear and comprehensive legal resolutions in addressing challenges within crypto trading and lending.
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