Digital Currency Group (DCG) has filed a lawsuit against its subsidiary Genesis, a crypto lender that went bankrupt in 2023. The lawsuit claims that the $1.1 billion loan provided to Genesis in 2022 was more than sufficient to cover its losses, with DCG arguing that Genesis has profited since its collapse due to the appreciation of recovered assets tied to the default of Three Arrows Capital. DCG contends that the value of the assets, mainly Bitcoin and shares in the Grayscale Bitcoin Trust, has increased significantly post-bankruptcy. This legal action follows Genesis's previous lawsuit against DCG seeking to recover $3.1 billion, alleging fraudulent transfers occurred as its financial condition deteriorated in 2022. Following the fallout from the collapse of major crypto firms, including Three Arrows Capital and FTX, DCG had stepped in to assist Genesis financially.

Source 🔗