Digital Currency Group (DCG) has filed a lawsuit against its subsidiary Genesis, the collapsed cryptocurrency lender, claiming that a $1.1 billion loan issued in 2022 was sufficient to cover losses from Genesis's failure. The lawsuit contends that Genesis has profited from the rise in value of collateral recovered from Three Arrows Capital (TAC) and other assets, effectively negating any losses. DCG's legal action follows Genesis's previous lawsuit against it, seeking $3.1 billion and alleging fraudulent transfers during its collapse. DCG argues that as the value of cryptocurrency assets has increased since regulatory changes, Genesis is left with excess recoveries surpassing creditor claims. The legal battle highlights the ongoing fallout from the 2022 cryptocurrency market downturn and the interplay between DCG and Genesis, amplifying scrutiny on their financial dealings.

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