Digital Currency Group (DCG) has filed a lawsuit against its subsidiary, Genesis, a crypto lender, alleging that the $1.1 billion loan made to Genesis in 2022 was sufficient to cover resultant losses from its collapse and that Genesis has since profited. The lawsuit comes in response to Genesis's prior suit against DCG for $3.1 billion, claiming fraudulent transfers made when it was collapsing in 2022. DCG asserts that the value of recovered collateral from Three Arrows Capital has exceeded obligations under a promissory note, implying Genesis has profited significantly from the situation. Genesis had previously paused withdrawals due to what it termed 'unprecedented market turmoil' linked to the collapse of digital asset firms, including Three Arrows Capital and FTX.

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