Digital Currency Group (DCG) has initiated legal action against its subsidiaries, Genesis Global Capital and Genesis Asia Pacific, claiming they owe over $1.1 billion due to overpayments related to the 2022 default of Three Arrows Capital (3AC). The complaint filed in the US Bankruptcy Court for the Southern District of New York alleges that the promissory note issued as a safety measure against potential losses from 3AC benefited Genesis, which reportedly profited by hundreds of millions without suffering any liquidity issues. DCG's lawsuit comes in the wake of ongoing tensions between it and Genesis, with Genesis previously suing DCG alleging fraud and insider enrichment. The lawsuit asks the court to order Genesis to pay more than $105 million along with interest, as cryptocurrency prices have since recovered, allowing Genesis to leverage collateral from 3AC’s loans.

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