Genesis Seeks Court Approval for Settlement with 3AC
Genesis, a bankrupt cryptocurrency lender, has requested court approval for its proposed settlement agreement with the collapsed crypto hedge fund Three Arrows Capital (3AC). The settlement would see the 3AC debtor receiving a $33 million allowed general unsecured claim against Genesis, which accounts for 3.3% of the $1 billion in claims originally asserted against Genesis debtors.
The agreement also includes Genesis relinquishing all claims and entitlements to Avalanche (AVAX) tokens and Near Protocol (NEAR) tokens in favor of the 3AC debtor. Additionally, both parties would release each other from liability as outlined in the settlement agreement.
Genesis emphasized that the proposed settlement is necessary for its Chapter 11 reorganization plans, aiming to reduce potential risks and expenses from litigation.
Creditors Can Object by November 24
The proposed settlement agreement was filed at the United States Bankruptcy Court for the Southern District of New York and requires Judge Sean Lane’s approval. Creditors have until November 24 to object to the settlement, with a hearing scheduled for November 30.
Anniversary of FTX Exchange Collapse
This news comes around the anniversary of the FTX exchange collapse, which occurred a year ago, dragging the cryptocurrency industry into a massive bear market. Genesis and 3AC are among many companies affected by FTX’s failure due to their exposure to the collapsed platform.
Hot Take: Settlement Agreement Aims to Smooth Reorganization Plans
The proposed settlement between Genesis and 3AC seeks to provide a smooth path for Genesis’s Chapter 11 reorganization plans and reduce potential risks and expenses from litigation. This move comes amid ongoing challenges stemming from their exposure to the collapsed FTX exchange, highlighting the broader impact of such failures on various entities within the cryptocurrency industry.
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