According to court documents, bankrupt cryptocurrency lender Genesis has agreed to pay $33 million to settle $1 billion in claims made by the now-defunct crypto hedge fund Three Arrows Capital (3AC).
The hedge fund’s claims against Genesis pertain to transfers that occurred before the lender’s own bankruptcy in January. The fund’s collapse in June 2022 was the first storm in a protracted crypto winter. Following “extensive negotiations,” the agreement was outlined in a filing on November 9. Genesis is requesting approval from a New York bankruptcy court to resolve 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,” according to the agreement, which will “mutually release each other from liability.”
Additionally, in July 2022, Genesis filed claims against 3AC totaling $1.2 billion. In a filing from last week, the company identified the hedge fund as one of its “largest borrowers between from 2020 to 2022, up until the time of its collapse.” The proposed settlement will be the subject of a hearing on November 30.