Digital Currency Group (DCG) has initiated a lawsuit against its subsidiary, Genesis, a previously operational crypto lender that went bankrupt in 2023. DCG claims that a $1.1 billion loan provided to Genesis following its 2022 collapse was sufficient to cover any losses incurred. The lawsuit contends that Genesis actually profited due to a rise in the value of recovered collateral from distressed assets, particularly those tied to the now-defunct Three Arrows Capital. DCG argues that the outstanding obligations under the promissory note have been fully satisfied, as the recovered assets have appreciated significantly in value since 2022. In a twist, Genesis had previously sued DCG for $3.1 billion, alleging fraudulent asset transfers while DCG was supporting Genesis during its financial struggles. The ongoing legal saga highlights the intertwined financial destinies of these two crypto entities during a turbulent period in the cryptocurrency market.

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