Digital Currency Group (DCG) has filed a lawsuit against its subsidiary, Genesis, claiming that the $1.1 billion loan the parent company provided was sufficient to cover losses due to Genesis's bankruptcy in 2023. The lawsuit argues that Genesis has, in fact, profited after the loan, primarily due to a rise in the value of recovered assets from the collapsed Three Arrows Capital. DCG asserts that its financial obligations under the promissory note are fulfilled, as the appreciation of cryptocurrency values has led to recoveries exceeding creditor claims. This legal battle unfolds as Genesis had previously sued DCG for $3.1 billion after alleging improper transfers during its financial decline. The complexity of the situation is compounded by both companies' roles during the wider crypto market turmoil, which began with the collapse of major players like FTX and Three Arrows Capital.

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