Digital Currency Group (DCG) has initiated a lawsuit against its subsidiary, Genesis, claiming that a $1.1 billion loan issued to the crypto lender was more than sufficient to cover its losses following the latter's collapse. DCG alleges that Genesis has actually generated profits post-collapse, asserting that the rise in the value of recovered collateral has cleared DCG's obligations under the promissory note. Genesis, which went bankrupt in 2023 after lending extensively to failing firms like Three Arrows Capital, paused client withdrawals amidst significant market turmoil. This lawsuit comes in response to Genesis' earlier claim seeking $3.1 billion for alleged fraudulent transfers made by DCG and its CEO Barry Silbert as Genesis faced bankruptcy. DCG contends that it fulfilled its contractual obligations under the promissory note and is now asking the court to confirm that these obligations have been fully satisfied, leveraging the appreciation of cryptocurrency values since 2022 that have resulted in recoveries exceeding creditors' claims.

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