Digital Currency Group (DCG) has initiated a lawsuit against its subsidiary, Genesis, claiming that a $1.1 billion loan given to the crypto lender has covered its losses following the latter's collapse in 2022. The lawsuit argues that Genesis has profited since its bankruptcy, particularly due to a recovery in the value of collateral from Three Arrows Capital, which includes Bitcoin and Grayscale Bitcoin Trust shares. DCG contends that Genesis has experienced no financial loss and is entitled to keep the profits generated from this appreciation. This lawsuit follows Genesis's own legal action against DCG, seeking $3.1 billion in damages, claiming that financial mismanagement occurred as it faced insolvency. Genesis had paused withdrawals to safeguard its operations during the crypto market turmoil triggered by the failures of major firms such as FTX.

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