{"id":64164,"date":"2023-11-10T10:45:40","date_gmt":"2023-11-10T14:45:40","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=64164"},"modified":"2023-11-10T10:45:44","modified_gmt":"2023-11-10T14:45:44","slug":"genesis-petitions-court-to-reduce-3ac-claim-from-1b-to-33m","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/genesis-petitions-court-to-reduce-3ac-claim-from-1b-to-33m\/","title":{"rendered":"Genesis Petitions Court to Reduce 3AC Claim from $1B to $33M"},"content":{"rendered":"\n

Genesis, a bankrupt crypto lender<\/a>, has petitioned the court to approve its proposed settlement agreement, which intends to reduce Three Arrows Capital's (3AC) claim from $1B to $33M.<\/p>\n\n\n\n

\"Genesis
Genesis Petitions Court to Reduce 3AC Claim from $1B to $33M<\/figcaption><\/figure>\n\n\n\n

Genesis petitioned the court on November 9 to grant the 3AC debtor a permitted general unsecured claim of $33 million against Genesis. This sum represents 3.3% of the initial $1 billion claims brought against Genesis debtors.<\/p>\n\n\n\n

The agreement states, “In complete satisfaction of the over $1 billion in claims asserted against each of the Genesis debtors, the 3AC debtor shall receive an allowed general unsecured claim against GGC of $33 million.”<\/p>\n\n\n\n

Genesis reports that in Chapter 11 cases about the FTX exchange <\/a>collapse, the most substantial asserted claims were 3AC's $1 billion claims against Genesis. Genesis emphasized that until its collapse in 2022, 3AC Debtor was one of Genesis's largest borrowers from 2020 to 2022.<\/p>\n\n\n\n

Furthermore, Genesis desires to transfer to the 3AC debtor all of its claims and entitlements on Avalanche (AVAX) tokens and Near Protocol (NEAR) tokens. The settlement proposal states that the insolvent companies must relinquish any outstanding obligations.<\/p>\n\n\n\n

\n

\u201cThe Genesis debtors and 3AC mutually release each other from liability as set forth in more detail in the Settlement Agreement; and the Genesis debtors expressly retain, and do not otherwise release, any and all claims that they may have against DCG.\u201d<\/em><\/p>\n<\/blockquote>\n\n\n\n

The lender asserted that the settlement was imperative to facilitate its Chapter 11 reorganization initiatives and mitigate potential litigation-related risks and expenses.<\/p>\n\n\n\n

The document states, “In addition to providing benefits to the estates of the Genesis debtors, the proposed settlement will substantially expedite the confirmation process for the Genesis debtors' Chapter 11 plan of reorganization, ensure timely distributions as stipulated, and eliminate the risks, expenses, and uncertainty that are typically associated with prolonged litigation among the involved parties.”<\/p>\n\n\n\n

The filing of the proposed settlement agreement in the United States Bankruptcy Court\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a> for the Southern District of New York is contingent upon the consent of Judge Sean Lane. Creditors have until November 24 to lodge objections to the settlement before the scheduled hearing on November 30.<\/p>\n\n\n\n

The announcement coincides with the FTX exchange crash's first anniversary, precipitating a severe bear market in the cryptocurrency industry. The FTX failure impacted Genesis, 3AC, and numerous other companies due to their exposure to the defunct platform. Specifically, Genesis' derivatives business was deprived of access to $175 million secured on FTX.<\/p>\n","protected":false},"excerpt":{"rendered":"

Genesis, a bankrupt crypto lender, has petitioned the court to approve its proposed settlement agreement, which intends to reduce Three Arrows Capital’s (3AC) claim from $1B to $33M. Genesis petitioned the court on November 9 to grant the 3AC debtor a permitted general unsecured claim of $33 million against Genesis. This sum represents 3.3% of […]<\/p>\n","protected":false},"author":12,"featured_media":64169,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[1709,414,4662],"class_list":["post-64164","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-3ac","tag-court","tag-genesis"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/11\/image-36.png","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/64164","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=64164"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/64164\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/64169"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=64164"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=64164"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=64164"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}