Digital Currency Group (DCG) has filed a lawsuit against its subsidiary Genesis, a now-defunct crypto lender, concerning a $1.1 billion loan provided in 2022. DCG argues that this loan covered more than enough of Genesis's losses from the fallout of the 2022 crypto crisis and that Genesis has profited since then. The suit claims that assets recovered from Genesis's dealings with Three Arrows Capital have increased in value, essentially nullifying DCG's obligations. Genesis went bankrupt in 2023 after being heavily exposed to failing firms like Three Arrows and FTX. This lawsuit follows Genesis's earlier claim against DCG for $3.1 billion, alleging fraudulent transfers and mismanagement during its financial decline. DCG asserts that despite the initial financial assistance, its obligations under the promissory note have been satisfied, highlighting the recent appreciation in cryptocurrency values that benefitted Genesis.

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