Digital Currency Group (DCG) is suing its subsidiary, Genesis, alleging that a $1.1 billion loan provided to the now-bankrupt crypto lender was more than sufficient to cover Genesis's losses from its 2022 collapse. In a lawsuit filed, DCG contends that Genesis has actually profited since the crisis due to a rise in the value of collateral recovered from Three Arrows Capital, a firm that defaulted on loans to Genesis. After declaring bankruptcy in 2023, Genesis halted withdrawals, citing severe market turmoil. DCG stepped in to assist Genesis's customers, but it now claims to have fully satisfied its obligations under the loan agreement. This lawsuit comes after Genesis recently filed its own lawsuit seeking $3.1 billion from DCG, accusing it of orchestrating fraudulent transfers and misleading disclosures during its financial distress. The ongoing legal disputes highlight the complications faced by both firms in the aftermath of significant market upheavals in the cryptocurrency sector.

Source đź”—