Digital Currency Group (DCG) has filed a lawsuit against its subsidiary, the crypto lender Genesis, over a $1.1 billion loan made during the firm's financial turmoil in 2022. DCG claims that this loan was sufficient to counteract Genesis's losses and argues that Genesis has actually profited from its assets since the loan was issued. The lawsuit arises amidst Genesis's earlier claim against DCG for $3.1 billion, alleging fraudulent transfers by DCG's CEO Barry Silbert. DCG contends that the surging values of recovered collateral, including Grayscale Bitcoin Trust shares, have eliminated any liabilities linked to the promissory note issued to Genesis. The lawsuit draws attention to the dramatic shifts that occurred in the crypto market following the collapse of several prominent firms, including Three Arrows Capital and FTX, which had utilized Genesis for lending services. DCG insists that their financial support was not only contractual but necessary to protect Genesis's operations during a challenging period in the crypto industry.

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