Digital Currency Group (DCG) has initiated legal action against its subsidiary, Genesis, following the crypto lender's collapse and subsequent bailout. This lawsuit claims that the $1.1 billion loan provided to Genesis in 2022 was excessive and that the subsidiary has actually profited post-collapse. After the fallout from the collapse of Three Arrows Capital, Genesis was supported by DCG to address potential losses. However, DCG argues that the rise in value of recovered assets from Three Arrows Capital means that Genesis suffered no losses and instead made hundreds of millions in profits. This lawsuit comes after Genesis sued DCG for $3.1 billion, alleging fraudulent transfers related to its financial demise.
Value-packed daily reports covering news, markets, on-chain data, fundraising, governance, and more – sent to your inbox. Saving you 1 hour of research daily.
