Digital Currency Group (DCG) has filed a lawsuit against its subsidiary, Genesis, alleging that the $1.1 billion loan provided to Genesis was more than sufficient to cover the lender's losses from its 2022 collapse. DCG asserts that Genesis has actually profited since its bankruptcy due to a rise in the value of collateral recovered from defaulted loans, primarily linked to Three Arrows Capital. The lawsuit claims that the appreciation of cryptocurrency values means Genesis faced no losses and is entitled to keep hundreds of millions in recovered assets. This lawsuit comes in response to another claim made by Genesis against DCG for $3.1 billion, accusing the parent company of orchestrating fraudulent transfers during the lender's financial downturn. The ongoing litigation reflects the complex and troubled interrelation between DCG and Genesis amid the broader challenges faced by the cryptocurrency industry following major market collapses.

Source đź”—