Digital Currency Group (DCG) has initiated a lawsuit against its subsidiary Genesis, the crypto lender that faced collapse in 2022. DCG argues that a $1.1 billion loan extended to Genesis was excessively sufficient to cover its losses, allowing Genesis to profit following its bailout. The legal action follows Genesis's earlier lawsuit against DCG for $3.1 billion, alleging fraudulent transfers during its financial downfall. In the latest lawsuit, DCG claims that assets recovered from Three Arrows Capital, which were part of a promissory note, have significantly appreciated since the original bankruptcy. Consequently, DCG states that Genesis has not actually suffered any losses and has instead profited substantially. This situation unfolds amid a turbulent period in the crypto market, where Genesis had previously lent to numerous firms facing dire financial situations, including Three Arrows Capital and Alameda Research. DCG maintains that it has met its obligations under the promissory note and seeks a court's acknowledgment that these obligations have been fulfilled.

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