Digital Currency Group (DCG) has launched a lawsuit against its subsidiary, the now-defunct crypto lender Genesis, in a move that underscores ongoing tensions between the two entities stemming from the 2022 cryptocurrency collapse. DCG claims that a $1.1 billion loan provided to Genesis was sufficient to cover the losses incurred post-collapse and argues that Genesis ultimately profited from this bailout. The lawsuit points out that due to the appreciation of recovered collateral from Three Arrows Capital, the assets which were initially seen as losses have risen in value, implying that Genesis's actual financial position has improved. Genesis had previously sued DCG for $3.1 billion, alleging fraudulent financial maneuvers as it faced insolvency. This series of legal battles highlights the complexities and fallout from the broader crypto sector's downturn, resulting in claims and counterclaims surrounding financial legitimacy and asset recoveries.

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