Digital Currency Group (DCG) has initiated a lawsuit against its subsidiary Genesis, a crypto lender now out of operation, regarding a $1.1 billion loan extended in 2022. DCG asserts that this loan was sufficient to cover losses and claims that Genesis has actually profited from the situation. The lawsuit alleges that due to the appreciation of recovered collateral and assets, particularly from Three Arrows Capital, Genesis's obligations have effectively been reduced to zero. DCG’s spokesperson noted that the company has consistently met its contractual obligations but believes those obligations have now been satisfied. This lawsuit follows Genesis's previous legal action against DCG for $3.1 billion, alleging fraudulent transfers during its collapse. The ongoing legal battles highlight the complexities and financial entanglements stemming from the turmoil in the cryptocurrency market over the past few years.

Source 🔗