Digital Currency Group (DCG) has filed a lawsuit against its subsidiary, Genesis, claiming that the $1.1 billion loan it provided in 2022 was sufficient to cover concerns following Genesis' collapse during the cryptocurrency market crash. DCG argues that due to the recovery in collateral value from Three Arrows Capital, rather than suffering losses, Genesis actually profited from the situation. Genesis faced significant liabilities after lending to distressed crypto firms, prompting DCG to step in to assist in meeting obligations. The lawsuit marks a significant turn after Genesis previously sued DCG for $3.1 billion, alleging fraudulent transfers during its financial turmoil. DCG's legal action aims to clarify that it has fulfilled its contractual obligations concerning the loan, asserting that the beneficial appreciation in cryptocurrency values means that Genesis owes nothing back to DCG and retains profits instead.

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