Genesis, the cryptocurrency lending company, has requested approval from the Southern District of New York Bankruptcy Court for a settlement agreement aimed at resolving the long-standing financial dispute with the collapsed crypto hedge fund Three Arrows Capital (3AC).
$1 Billion Claim Reduced to $33 Million
According to the latest documents submitted to the court by Genesis, it is alleged that the debtor of 3AC must have an unsecured general claim against Genesis in the amount of $33 million. This amount constitutes approximately 3% of the initially claimed $1 billion against Genesis debtors.
The Necessity of the Settlement Agreement Is Emphasized
Genesis also highlights that the debtor of 3AC was one of the largest debtors from 2020 to 2022, drawing attention to the depth of the financial dispute and the prolonged duration. However, the recent statement from Genesis indicates that a settlement agreement is necessary to provide a smooth path for restructuring plans under Chapter 11 and to reduce potential risks and expenses arising from the lawsuit.
Finally, the proposed settlement agreement has been submitted to the United States Southern District of New York Bankruptcy Court and awaits approval from Judge Sean Lane. Creditors also have the opportunity to object to this agreement, with a deadline for objections set until November 24.