TechFlow news — On June 5, according to CoinDesk's Sunday report, the now-bankrupt cryptocurrency hedge fund Three Arrows Capital (3AC) has requested to participate in the mediation process of crypto lending firm Genesis Global's bankruptcy proceedings.
In the filing, 3AC liquidators Russell Crumpler and Christopher Farmer stated that without their involvement as joint liquidators, Genesis' mediation and plan negotiation efforts would fail to reach consensus on claims from all stakeholders, thereby preventing the maximization of the debtor's estate value.
Previously, a judge appointed Randall J. Newsome to mediate negotiations regarding contributions DCG, Genesis’ parent company, should make toward any restructuring plan. However, Genesis has sought to extend Newsome’s mandate by another two weeks, prompting 3AC’s belated response.
Sources indicate that while 3AC is one of the largest creditors, it has not been sufficiently involved in Genesis’ negotiations. At one point, 3AC reached a temporary agreement limiting Genesis’ ability to transfer shares and cryptocurrencies during claims resolution. The proposal to extend mediation will be discussed at a hearing on Monday in the Southern District of New York.
