Digital Currency Group (DCG) has filed a lawsuit against its subsidiary, the now-defunct crypto lender Genesis, over a $1.1 billion loan allegedly made to cover losses from the latter's collapse. DCG claims that the loan was excessive and that Genesis has actually profited from it, contrary to its assertions of financial distress. The lawsuit follows Genesis’s earlier claim against DCG for $3.1 billion, alleging improper financial transfers amid its 2022 collapse due to loans extended to firms like Three Arrows Capital. DCG asserts that the appreciation in the value of collateral recovered from Three Arrows has rendered its obligations to Genesis fulfilled. As such, DCG seeks judicial confirmation that Genesis experienced no losses and retains profits exceeding hundreds of millions. The dispute showcases the ongoing turmoil within the crypto lending sector following widespread market disruptions in 2022.

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