Digital Currency Group (DCG) has initiated legal proceedings against its subsidiary, Genesis, a crypto lender that declared bankruptcy. The lawsuit stems from a $1.1 billion loan made by DCG to Genesis, which it claims is more than sufficient to cover any losses incurred as a result of Genesis's collapse. DCG argues that Genesis has actually realized profits from the loan due to the appreciation in the value of assets recovered from Three Arrows Capital, from which Genesis had previously incurred losses. The firm highlights that the increase in value of cryptocurrency assets means Genesis has not only avoided losses but has profited by hundreds of millions of dollars. This legal action follows Genesis's own lawsuit against DCG, seeking over $3.1 billion in damages, alleging fraudulent transfers. The situation has evolved amidst significant market turmoil and the fallout from multiple crypto-related collapses that began in 2022, impacting several firms across the crypto landscape.

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