Digital Currency Group (DCG) has initiated a lawsuit against its subsidiary Genesis, asserting that a $1.1 billion loan made to Genesis was sufficient to cover its losses from the firm's 2022 collapse. DCG claims that Genesis has actually profited following the initial bailout, as the value of recovered collateral from Three Arrows Capital has increased significantly, potentially surpassing the creditors' claims as of the bankruptcy petition date. Genesis, which went bankrupt due to significant loans to failing firms like Three Arrows Capital, previously sued DCG for $3.1 billion, alleging fraudulent transfers as its financial stability deteriorated. DCG contends that it fulfilled its obligations under the promissory note and is seeking court confirmation that these obligations have been satisfied. The dispute highlights the ongoing complexities and legal battles within the cryptocurrency sector post-2022 market collapse.

Source đź”—