Digital Currency Group (DCG) has initiated a lawsuit against its subsidiary Genesis, the now-defunct crypto lender, claiming that a $1.1 billion loan provided in 2022 covered any losses Genesis accrued during its collapse. DCG argues that Genesis has profited from assets recovered during bankruptcy proceedings, contrary to claims made in a previous lawsuit by Genesis against DCG for $3.1 billion. The lawsuit states that the value of shares in the Grayscale Bitcoin Trust and other assets has greatly increased since the crisis, suggesting that Genesis ultimately suffered no loss from Three Arrows Capital's default and has in fact benefited financially. DCG contends that its contractual obligations have been fully satisfied and seeks the court's confirmation of this point. This legal battle adds another chapter in the ongoing saga following the broader market turmoil that impacted various crypto firms in 2022.

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