The crypto lender, which filed for Chapter 11 bankruptcy protection, and collapsed hedge fund requested court approval for their negotiated settlement.
Genesis is looking to settle 3AC claims.
Photo from Unsplash
Posted November 13, 2023 at 2:20 pm EST.
Crypto lender Genesis will pay $33 million to settle $1 billion in claims by collapsed hedge fund Three Arrows Capital (3AC), according to a court document filed on Nov. 9.
Three Arrows Capital had heavy exposure to the Terra ecosystem, which imploded in May 2022 due to stablecoin instability and wiped out $50 billion in valuation from the crypto market.
In November, multi-billion dollar crypto exchange FTX filed for bankruptcy protection due to a liquidity crisis from mishandling client funds. Genesis, which is owned by Digital Currency Group (DCG) and had exposure to both 3AC and FTX, filed for bankruptcy earlier this year owing creditors $3.4 billion.
According to the filing with the U.S. Bankruptcy Court Southern District of New York, the deal follows “extensive negotiations” between the two firms and it will “mutually release each other from liability.”Genesis is seeking a new court date on Nov. 30 to receive final approval for the settlement.
Last week, two Genesis creditors spoke to Unchained Crypto in a rare media appearance, outlining the collapse of the company and what they hope will come next.
Read More: Two Genesis Creditors Describe Their Frustrations With the Bankrupt Crypto Lender
