Digital Currency Group (DCG) has initiated a lawsuit against its former subsidiary, crypto lender Genesis, which collapsed following the 2022 cryptocurrency crisis. The $1.1 billion loan that DCG extended to Genesis was intended to cover losses incurred during this tumultuous period. However, DCG's lawsuit alleges that Genesis has actually profited from the situation due to significant appreciation in the value of the collateral recovered from Three Arrows Capital, a firm that had defaulted on its debt. DCG contends that the loan was more than sufficient to compensate for losses, asserting that Genesis has reaped hundreds of millions in profits since the crisis. This lawsuit comes after Genesis previously filed its own suit against DCG seeking $3.1 billion, claiming fraudulent transfers were made during its collapse. DCG maintains it has fulfilled its contractual obligations concerning the promissory note issued to Genesis, arguing that these obligations have now been satisfied due to the rise in value of cryptocurrency assets following the market downturn.

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