Digital Currency Group (DCG) is suing its subsidiary Genesis, the defunct crypto lender, over a $1.1 billion loan provided in 2022. DCG alleges that this loan was more than sufficient to cover Genesis's losses following its collapse after lending to firms like Three Arrows Capital. Furthermore, DCG asserts that Genesis has profited from the rise in value of recovering collaterals, thus it no longer owes DCG under the promissory note. The lawsuit arises after Genesis filed its own lawsuit against DCG for $3.1 billion, claiming improper transfers as its financial health deteriorated. DCG maintains that it fulfilled its contractual obligations and seeks judicial confirmation that these obligations were satisfied. As the crypto market has rebounded since 2022, DCG argues that Genesis’s recovery exceeds its creditor claims due to appreciating values of involved assets, including shares from the Grayscale Bitcoin Trust.

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