Digital Currency Group (DCG) has filed a lawsuit against its subsidiary, Genesis, alleging that a $1.1 billion loan made to Genesis in 2022 was sufficient to cover its losses and that Genesis has, in fact, profited since then. The lawsuit arises amidst an ongoing dispute, as Genesis previously sued DCG for $3.1 billion, claiming fraudulent transfers during its collapse. DCG argues that the appreciation in the value of collateral recovered from Three Arrows Capital has resulted in Genesis not suffering any losses from its defaults. They state that their contractual obligations to Genesis have been met and aim to have the court confirm that these obligations are fully satisfied. This case reflects the continuing fallout from the 2022 crypto market turmoil, which has significantly impacted numerous firms within the ecosystem.

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