Digital Currency Group (DCG) has initiated legal action against its subsidiary Genesis, the now-defunct crypto lender, claiming that a $1.1 billion loan issued in 2022 was more than sufficient to cover Genesis's losses following its collapse. DCG argues that due to an increase in the value of recovered collateral from failed firms, including Three Arrows Capital, Genesis has not only avoided losses but has profited significantly in the aftermath. This lawsuit follows Genesis's previous suit against DCG for $3.1 billion, alleging misconduct during its financial deterioration. DCG maintains that it has fulfilled its obligations under the loan agreement and seeks court confirmation that these obligations have been satisfied. The lawsuit emphasizes the appreciation of cryptocurrency values since the loan was initiated, asserting that Genesis's financial recovery exceeds the original creditor claims.

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