Digital Currency Group (DCG) has filed a lawsuit against its subsidiary, Genesis, contending that a $1.1 billion loan given to the crypto lender was sufficient to cover its losses from the firm's bankruptcy in 2023. DCG argues that Genesis has profited from the rise in values of recovered collateral, particularly assets from Three Arrows Capital, which were primarily in Bitcoin, leading to a situation where Genesis allegedly suffered no loss from the default. Genesis, on the other hand, has previously sued DCG for $3.1 billion, claiming fraudulent transfers occurred as the lender faced financial difficulties. The ongoing dispute highlights the complexities that emerged due to the crypto market's volatility and the intertwined fates of firms within the industry during the downturn following the collapse of major players like FTX. This suit is a part of a larger struggle over asset recovery and accountability in the wake of substantial financial losses in the crypto space.

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