Genesis Reaches $33 Million Deal With Three Arrows Capital
Reading Time: 2 minutesGenesis has settled $1 billion in claims with Three Arrows Capital, agreeing to pay $33 million
The settlement involves a significantly reduced payment from Genesis to Three Arrows, concluding claims related to transfers made before Genesis filed for bankruptcy
The agreement also releases Three Arrows from a lawsuit filed by Genesis in July 2022 concerning funds associated with the hedge fund’s collapse
Bankrupt cryptocurrency lender Genesis has reached a settlement with former crypto hedge fund Three Arrows Capital to resolve $1 billion in claims. The settlement sees the pair agree to a payment of $33 million from Genesis to Three Arrows, a fraction of the claimed amount, relating to transfers made before the former’s bankruptcy in January. The agreement also releases Three Arrows from the $1 billion suit Genesis had filed against it in July last year over money it said was stuck on the ship when it went down.
Five Months Worth of Negotiations Pays Off
On November 29, 2022, five months after entering liquidation, Three Arrows took legal action against Genesis and its parent company Digital Currency Group (DCG), seeking the recovery of assets exceeding $578 million. In response, on May 22, 2023, Three Arrows filed proofs of claim against Genesis and related companies representing claims totaling over $1 billion, including avoidance actions.
A legal tussle ensued, with Genesis objecting to Three Arrows’ claims in early September, but on October 22, 2023, the parties reached a settlement agreement in principle. As a result, all litigation proceedings related to the Three Arrows’ claims were paused pending the documentation of the settlement agreement.
Three Arrows Released From $1 Billion Suit
The settlement itself, outlined in a November 9 filing, explained that the two entities had been in discussions over how to resolve the $1 billion claim and had come to a mutual figure of $33 million to settle it. The agreement involves Three Arrows Capital receiving a general unsecured claim of $33 million, resolving over $1 billion in claims against Genesis. The deal also includes mutual releases from liability.
This agreement brings to an end the case brought by Genesis in July 2022 which sought the repayment of $1.2 billion it said it had tied up in Three Arrows prior to its collapse, although it still needs a judge’s sign-off to ratify it.
The post Genesis Reaches $33 Million Deal With Three Arrows Capital appeared first on FullyCrypto.
Filed under: Bitcoin - @ November 14, 2023 9:11 am