Digital Currency Group (DCG) has filed a lawsuit against its subsidiary, Genesis, which once served as a major crypto lender before collapsing. The $1.1 billion loan provided by DCG to Genesis in 2022, aimed at covering losses from its downfall, is now claimed by DCG to have exceeded its obligations, arguing that Genesis has profited due to an appreciation in the value of collateral assets, including shares from the Grayscale Bitcoin Trust. Genesis had previously sued DCG for $3.1 billion, alleging improper financial transfers during its operational downturn. DCG contends that any losses Genesis faced have been mitigated by recovery from assets linked to Three Arrows Capital, a firm that also collapsed amidst the crypto crisis. The filing states that Genesis has not only recovered but has gained significantly, leading DCG to seek a judicial confirmation that its loan obligation has been fulfilled. The unfolding legal battle reflects ongoing challenges in the cryptocurrency sector and the ramifications of prior high-risk lending practices.

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