Genesis seeks court approval for 3AC settlement

In a Nov. 9 court filing, Genesis, the cryptocurrency trading lender heavily impacted by the collapse of Three Arrows Capital (3AC) and FTX last year, is now seeking out court approval for a settlement agreement.

The agreement is said to give 3AC an allowed general unsecured claim of $33 million against Genesis instead of the $1 billion claim.

Another step

Genesis states that 3AC’s $1 billion claims were the largest in Chapter 11 cases associated with the FTX exchange, stressing that 3AC Debtor was one of the biggest borrowers from 2020 to 2022 when it collapsed.

Now, under the agreement, Genesis will have to waive all its assertions and rights to an undisclosed quantity of AVAX tokens from Avalanche and NEAR tokens from Near Protocol. In addition, the bankrupt entities will engage in a mutual release, absolving each other of any outstanding liabilities.

The document also states that the mentioned Claim Numbers for FTX Trading Ltd., Alameda Research LLC and Ltd. and West Realm Shires Inc and Services Inc. will no longer be considered valid or recognized in the legal proceedings.

An upcoming hearing

On Jan. 20, the debtors submitted a joint Chapter 11 Bankruptcy plan. Subsequently, on Nov. 7, debtors filed an amended joint Chapter 11 plan and the corresponding disclosure statement. 

The bankruptcy court has now set a hearing to assess the approval of the disclosure statement on Nov. 13.