Bankrupt crypto lender Genesis has agreed to settle $1 billion in claims by defunct crypto hedge fund Three Arrows Capital (3AC) with a payment of $33 million, court documents show.
The hedge fund's collapse in June 2022 marked the first storm in a long crypto winter, and its claims against Genesis refer to transfers made prior to the lender's own bankruptcy in January. The deal, set out in a filing from Nov. 9, follows "extensive negotiations," between the parties, and Genesis is seeking a New York bankruptcy court's go-ahead to settle the claims.
"The 3AC Debtor shall receive an allowed general unsecured claim against [Genesis] in the amount of $33,000,000 in full and complete satisfaction of the more than $1 billion dollars in claims asserted against each of the Genesis Debtors," the document said, adding that the agreement will "mutually release each other from liability."
Genesis had also filed $1.2 billion in claims against 3AC in July 2022, and, in last week's filing, called the hedge fund one of its "largest borrowers between from 2020 to 2022, up until the time of its collapse."
A hearing on the proposed settlement is scheduled for Nov. 30.
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