Digital Currency Group (DCG) has initiated a lawsuit against its subsidiary Genesis, asserting that the $1.1 billion loan extended to the now-defunct crypto lender in 2022 was sufficient to cover losses from its collapse. DCG claims that Genesis has profited following its bankruptcy due to a significant increase in the value of assets recovered from Three Arrows Capital, suggesting that Genesis actually did not suffer financial losses as a result of defaults from its lending practices. The lawsuit follows Genesis's earlier claim against DCG for $3.1 billion, alleging improper transfers during the lender's financial decline. DCG's spokesperson emphasized that they have fulfilled their contractual obligations and are seeking court confirmation that the loan obligations have been fully satisfied, citing the appreciation of cryptocurrency values since 2022 as the basis for their argument. Genesis had previously paused withdrawals for clients amid market turmoil stemming from the collapses of other significant crypto entities.

Source đź”—