Digital Currency Group (DCG) has initiated a lawsuit against its subsidiary, Genesis, a crypto lender that collapsed in 2022. The lawsuit revolves around a $1.1 billion loan that DCG provided to Genesis, which it argues was meant to cover the losses incurred during the subsidiary's decline. However, DCG claims that Genesis now actually stands to profit due to a rise in value of assets linked to the failure of Three Arrows Capital (TAC), marking a significant turnaround since the turmoil. Genesis is accused of benefiting from the appreciation of recovered collateral, which includes shares from the Grayscale Bitcoin Trust. This legal battle follows another from Genesis against DCG, seeking $3.1 billion in damages, which alleges that fraudulent transfers occurred during its collapse. DCG's lawsuit asserts that its financial obligations under the initial loan agreement have now been fully satisfied as a result of the appreciated assets.

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