Digital Currency Group (DCG) has initiated legal proceedings against its subsidiary Genesis, the now-defunct crypto lender, over a disputed $1.1 billion loan. DCG alleges that this loan was sufficient to cover Genesis's losses after its collapse in 2023, and contends that the subsidiary has profited since then. Following the turmoil in the crypto market in 2022, Genesis filed for bankruptcy after having issued substantial loans to failing firms like Three Arrows Capital. DCG provided capital to assist in repaying Genesis's customers during this period. The lawsuit claims that the rise in the value of collateral, primarily in Bitcoin and Grayscale Bitcoin Trust shares, negates DCG's obligations under the promissory note as those obligations are now effectively zero. Genesis, however, countersued DCG for $3.1 billion, alleging fraudulent financial transfers during its operational decline, marking an ongoing legal battle between the two entities that reflects the greater turmoil in the crypto industry.

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