Digital Currency Group (DCG) has filed a lawsuit against its subsidiary, Genesis, claiming that a $1.1 billion loan provided in 2022 covered potential losses and that Genesis has since profited from its recovery. Genesis, a crypto lender, went bankrupt in 2023 after lending to the now-defunct Three Arrows Capital. DCG argues that the value of the collateral received from Three Arrows, which includes Bitcoin and Grayscale Trust shares, has increased significantly, nullifying Genesis's debts under the promissory note. The lawsuit asserts that Genesis did not incur any losses from its default and has actually benefited by hundreds of millions of dollars since the initial loan. The legal action follows Genesis's own lawsuit against DCG seeking $3.1 billion, alleging fraudulent transfers made before its collapse. DCG's spokesperson stated they have met their obligations under the promissory note and are seeking court confirmation of its full satisfaction.

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