Digital Currency Group (DCG) has filed a lawsuit against its subsidiary, Genesis, alleging that the $1.1 billion loan made to the now-defunct crypto lender was sufficient to cover its losses following Genesis's collapse in 2022. DCG claims that Genesis has actually profited from the situation, particularly due to the rising value of collateral recovered from Three Arrows Capital, which had defaulted on its loans. The lawsuit argues that because of this appreciation, the obligations under the promissory note have been fully satisfied. The legal action comes after Genesis recently sued DCG for $3.1 billion, accusing the parent company of fraudulent transfers during the collapse. DCG contends that it met all contractual obligations and is now seeking judicial confirmation that its obligations have been fulfilled. The ongoing litigation highlights the tumultuous aftermath of the 2022 crypto market crash and the financial burdens faced by firms involved in significant loans during the downturn.

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