Genesis Global gets approval of $33 million settlement with 3AC

By Sarah Lizee

Olympia, Wash., Nov. 30 – Genesis Global Holdco, LLC secured approval of a settlement with Three Arrows Capital, Ltd. (3AC), according to an order filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, Genesis said it has been engaged in extensive motion practice and discovery for nearly five months regarding proofs of claims filed by the joint liquidators on behalf of 3AC.

The settlement provides that 3AC will receive an allowed general unsecured claim against Genesis Global Capital, LLC in the amount of $33 million in full and complete satisfaction of the more than $1 billion in claims asserted against each of the Genesis debtors.

Genesis and 3AC will mutually release each other from liability.

“The proposed settlement will, among other benefits to the Genesis debtors’ estates, significantly smooth the path to confirmation of the Genesis debtors’ Chapter 11 plan of reorganization, prompt distributions thereunder, and eliminate the risks, expenses, and uncertainty associated with protracted litigation among the parties,” Genesis said in the motion seeking approval of the settlement.

Genesis Global is a New York-based cryptocurrency lender that filed bankruptcy in the U.S. Bankruptcy Court for the Southern District of New York on Jan. 19, 2023 under Chapter 11 case number 23-10063.

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