Digital Currency Group (DCG) has initiated a lawsuit against its subsidiary, Genesis, a collapsed crypto lender. This lawsuit stems from an earlier $1.1 billion loan DCG provided to Genesis during its financial troubles in 2022. DCG claims that this loan was sufficient to cover any losses Genesis might have incurred and asserts that Genesis has seen substantial profits since then due to a rise in the value of collateral recovered from bankrupt entities like Three Arrows Capital and assets tied to the Grayscale Bitcoin Trust. DCG argues that these recoveries have increased in value and thus believe their obligations based on the promissory note have been fulfilled. This legal action follows Genesis recently suing DCG for $3.1 billion, alleging fraudulent transfers were made while its financial situation deteriorated. Meanwhile, DCG's spokesperson stated they have consistently complied with contractual obligations under the promissory note and are simply seeking court confirmation that those obligations were completely satisfied.

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