Digital Currency Group (DCG) has filed a lawsuit against its subsidiary, Genesis, asserting that the $1.1 billion loan provided to the now-defunct crypto lender was excessive and covered all losses from Genesis's 2022 collapse. DCG contends that, despite the bankruptcy of Genesis due to its loans to firms like Three Arrows Capital, Genesis has turned a profit from assets recovered post-collapse. The lawsuit argues that the increase in value of the collateral, which includes Bitcoin and Grayscale Bitcoin Trust shares, means Genesis sustained no loss and has benefitted financially since its bankruptcy. Genesis, in retaliation, had previously sued DCG for $3.1 billion, claiming improper financial transfers as its own conditions worsened. The situation reflects ongoing tensions in the crypto sector, particularly following significant sector-wide crises in 2022.

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