Digital Currency Group (DCG) has filed a lawsuit against its subsidiary, Genesis, claiming that the $1.1 billion loan extended to the now-defunct crypto lender is more than sufficient to cover losses from its 2022 collapse. DCG asserts that Genesis has actually profited from the situation due to a rise in collateral value, particularly in Bitcoin and shares of the Grayscale Bitcoin Trust, leading to no loss from the default of Three Arrows Capital, a firm to which Genesis lent heavily. The lawsuit arrives as Genesis previously filed its own suit against DCG for $3.1 billion, alleging fraudulent asset transfers made while its financial state deteriorated. DCG, having aided Genesis during its crisis by satisfying obligations relating to the promissory note, now seeks judicial validation that those obligations have been met. The ongoing legal battles reflect the tumultuous state of the crypto lending market following the significant downturn brought on by the collapse of major firms like FTX and Terra.

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