Digital Currency Group (DCG) is suing its subsidiary, Genesis, claiming that a $1.1 billion loan made in 2022 was sufficient to cover losses from Genesis's bankruptcy due to its connections with collapsed firms like Three Arrows Capital. DCG argues that Genesis has actually profited from the situation due to a rise in the value of the collateral recovered, which consists mainly of Bitcoin and Grayscale Bitcoin Trust shares. The lawsuit asserts that any obligations under the promissory note have been nullified due to this appreciation in asset value, leaving Genesis without losses. This legal action follows Genesis's own lawsuit against DCG, seeking $3.1 billion for alleged fraudulent transfers made during the crypto lender's decline. According to DCG, they have fulfilled their obligations and are asking the court to recognize that the obligations have been entirely satisfied.

Source 🔗