Digital Currency Group (DCG) has initiated a lawsuit against its subsidiary, Genesis, claiming that a $1.1 billion loan issued in 2022 was sufficient to cover losses following Genesis's bankruptcy. DCG argues that Genesis has since profited from the loan and that recoveries from collateral related to the failed firm Three Arrows Capital have exceeded creditor claims. Genesis had previously filed a lawsuit against DCG for $3.1 billion, asserting that DCG and its CEO orchestrated fraudulent transfers as Genesis was collapsing. In the latest developments, DCG contends that due to significant increases in cryptocurrency value, it believes its obligations under the promissory note are fully satisfied and that the court should acknowledge this. Genesis had been heavily involved in lending to struggling crypto firms during the 2022 market downturn, which led to its insolvency.

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