Digital Currency Group (DCG) has filed a lawsuit against its subsidiary, Genesis, amid ongoing legal disputes following Genesis's bankruptcy. DCG claims that the $1.1 billion loan extended to Genesis in 2022 fully covered its losses. The lawsuit asserts that Genesis has profited from its previous investments in recovering collateral from the defunct Three Arrows Capital, which has seen appreciation in value, thus negating any obligations under the promissory note. Genesis had previously taken out significant loans with efforts to support struggling crypto firms like Three Arrows Capital and FTX-linked entities. The situation escalated when Genesis sued DCG for $3.1 billion, alleging improper financial transfers as it neared insolvency. The legal battles reflect the complexities of the collapsing crypto market, as both DCG and Genesis contend their financial positions are being misrepresented. The outcome of these lawsuits could have substantial implications for both entities as they navigate this crisis in the crypto landscape.

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