Digital Currency Group (DCG) has filed a lawsuit against its subsidiary, Genesis, claiming that a $1.1 billion loan provided in 2022 was sufficient to cover Genesis's losses after its collapse. The lawsuit argues that Genesis has since profited due to a recovery in the value of collateral linked to bankrupt crypto firm Three Arrows Capital (TAC). DCG asserts that the rise in asset values, particularly in Bitcoin and Grayscale Bitcoin Trust shares, means Genesis has effectively suffered no loss from TAC's default. This legal action follows a previous lawsuit from Genesis against DCG, seeking $3.1 billion in what it claims are improper asset transfers amid its financial struggles. Genesis's bankruptcy was heavily tied to lending to distressed firms like Three Arrows Capital and FTX, leading to significant market turmoil in 2022. Now, DCG is seeking court validation that its obligations under the promissory note have been fully met, amidst ongoing disputes over financial management and asset recovery.

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