Digital Currency Group (DCG) has initiated a lawsuit against its subsidiary, Genesis, a collapsed crypto lender, following a convoluted series of financial troubles dating back to 2022. DCG stated that a $1.1 billion loan given to Genesis was meant to cover losses resulting from the lender's failure, asserting that Genesis has since benefitted instead of incurring losses. The legal battle emerged after Genesis filed a $3.1 billion lawsuit against DCG, accusing it of fraudulent transfers during the company's collapse. In its complaint, DCG argues that the assets recovered from failed loans, particularly from Three Arrows Capital, have appreciated significantly, negating the debt owed to Genesis. DCG emphasizes it has upheld its contractual obligations and seeks judicial confirmation that its financial commitments have been fully met. This lawsuit marks a turning point in the ongoing legal disputes tied to the collapse of significant players in the cryptocurrency markets in 2022.

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