Digital Currency Group (DCG) has initiated a lawsuit against its subsidiary, Genesis, asserting that a $1.1 billion loan made to the now-defunct crypto lender was ample to cover its losses stemming from Genesis's collapse in 2022. DCG claims that Genesis has actually profited due to the appreciation of recovered collateral from Three Arrows Capital, contrary to assertions made by Genesis in its own lawsuit, which seeks $3.1 billion, alleging fraudulent transfers by DCG. DCG argues that the financial recovery from assets related to Three Arrows Capital has negated its obligations under the loan agreement, leading to the conclusion that Genesis sustained no losses and gained significantly since the market's turnaround. This lawsuit follows a tumultuous period for Genesis, which faced collapse after dealing with troubled crypto firms like Three Arrows Capital and FTX, prompting DCG to support it with capital to assist in covering customer withdrawals. DCG requests the court to affirm that its contractual obligations are fully satisfied due to these developments.

Source đź”—