Digital Currency Group (DCG) has filed a lawsuit against its subsidiary, Genesis, a crypto lender that has ceased operations. This lawsuit is significant as it claims that the $1.1 billion loan provided by DCG was sufficient to cover any losses incurred by Genesis following its collapse in 2022. The lawsuit asserts that Genesis has benefited financially since then due to an increase in the value of collateral recovered from Three Arrows Capital, a company that also faced financial troubles. DCG argues that the obligations under a promissory note related to this loan have been fully satisfied as Genesis effectively profited from the recovery. The backdrop of this legal confrontation reveals ongoing tensions within the cryptocurrency industry, particularly as Genesis had previously sued DCG seeking $3.1 billion, alleging fraudulent actions during its financial distress. Thus, the outcome of this case could have significant implications for the parties involved and the broader crypto landscape.

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