Genesis and 3AC reach compensation agreement: a billion-dollar matter settled with a 33 million dollar payout.
Genesis, the current bankrupt cryptocurrency lending firm, has agreed to settle a billion-dollar indemnity claim advanced by Three Arrows Capital (3AC), a failed crypto hedge fund, through a payment of 33 million dollars. This information was officially revealed through recently published legal documents.
The hedge fund’s bankruptcy
The collapse of 3AC in June 2022 marked a particularly difficult period for the world of cryptocurrencies. 3AC’s compensation claims against Genesis refer to transfers that occurred before the same lending company declared bankruptcy in January.
Agreement details
This agreement was reached after “long negotiations” between the two parties and currently, Genesis is seeking the approval of a New York bankruptcy court to resolve the matter.
The document confirms: “The debtor 3AC will obtain a general unsecured indemnity claim against Genesis for an amount of 33 million dollars, which will fully and completely satisfy the compensation claim of over a billion dollars advanced towards each of the Genesis debtors”. Additionally the agreement will allow the two involved parties to “free one another from further liabilities”.
In July 2022, Genesis had made a claim for indemnity of 1.2 billion dollars against 3AC and, in last week’s instance, it identified the hedge fund as one of its “major debtors between 2020 and 2022, up until the time of its failure”.
The documents finally reveal that a hearing to discuss the proposed settlement is scheduled for November 30th.
