Defunct crypto hedge fund 3AC insists on being included in the bankruptcy mediation of Genesis Global, according to a recent filing.
Randall J. Newsome has been appointed as the mediator by Judge Sean Lane to facilitate discussions on the involvement of Digital Currency Group (DCG), the owner of Genesis, in a potential restructuring plan.
Genesis’ request for a two-week extension of Randall J. Newsome’s mandate led to 3AC asserting its claim, with the defunct hedge fund seeking over $1 billion for pre-bankruptcy transfers to Genesis.
In a filing, Russell Crumpler and Christopher Farmer emphasized the crucial role of 3AC Joint Liquidators in the mediation process, ensuring the fair resolution of stakeholders’ claims and maximizing the value of the Debtors’ estates.
Despite being one of the largest creditors, Crumpler and Farmer contend that they have not been sufficiently engaged in the ongoing discussions, despite reaching an interim agreement in March to restrict asset transfers by Genesis during claim settlement.
The potential extension of the mediation period will be reviewed at a hearing in the Southern District of New York, while users of the Gemini Earn program have raised objections, seeking a faster return of their funds.
Genesis Global, along with its affiliated companies, filed for bankruptcy on January 20, with Digital Currency Group (DCG) revealing debts of $526 million to Genesis Capital and $1.1 billion under a promissory note.
The involvement of the defunct crypto hedge fund 3AC in the bankruptcy mediation of Genesis Global raises significant complexities and underscores the need for fair representation and resolution for all stakeholders involved.