Digital Currency Group (DCG) has filed a lawsuit against its subsidiary, Genesis, claiming that a $1.1 billion loan provided to the now-collapsed crypto lender was more than sufficient to cover any losses incurred. Following Genesis's bankruptcy in 2023, a series of bankruptcies in the crypto industry led to significant financial turmoil. DCG argues that due to the increased value of the collateral from failed firm Three Arrows Capital, their obligations under the promissory note are now nullified. The lawsuit states that Genesis has actually profited by hundreds of millions since the crypto market began recovering. Previously, Genesis had sued DCG for $3.1 billion, alleging fraudulent financial practices amid its financial distress. The legal battle exemplifies the ongoing turmoil and complexities that have emerged in the cryptocurrency lending sector since the market downturn.

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