Digital Currency Group (DCG) is suing its subsidiary, Genesis, claiming that a $1.1 billion loan made to the crypto lender was more than sufficient to cover losses stemming from Genesis's bankruptcy in 2023. DCG alleges that Genesis has profited in the long run and is entitled to keep these earnings, alleging that the rise in value of recovered collateral from entities such as Three Arrows Capital has diminished its obligations under the loan to zero. The lawsuit follows Genesis's own suit against DCG for $3.1 billion, claiming improper financial transfers as it faced financial troubles in 2022. Genesis was heavily involved in lending to struggling crypto firms, including Three Arrows Capital, which contributed to its downfall amidst a market contagion triggered by several high-profile collapses. DCG had previously issued the promissory note to aid Genesis during a difficult period, asserting their contractual obligations have been met and are now fully satisfied.

Source đź”—