Digital Currency Group (DCG) has filed a lawsuit against its subsidiary Genesis, a crypto lender, regarding a $1.1 billion loan issued in 2022. DCG claims that the loan was more than sufficient to cover Genesis's losses incurred during its collapse, stating that Genesis has profited significantly since the restructuring following the incident. The lawsuit argues that the increased value of recovered collateral from Three Arrows Capital, previously involved in lending activities with Genesis, has neutralized DCG's financial obligations under the promissory note issued to support Genesis. DCG highlights that due to rising cryptocurrency values, Genesis not only avoided losses but has actually profited by hundreds of millions through this situation. The legal dispute escalated after Genesis sued DCG in May for $3.1 billion, alleging fraudulent transfers made during its financial turmoil. DCG seeks confirmation from the court that its obligations have been fully satisfied following the financial recovery process.

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