Digital Currency Group (DCG) has filed a lawsuit against its subsidiary Genesis, the now-defunct crypto lender, claiming that a $1.1 billion loan extended to Genesis was sufficient to cover losses following its collapse in 2022. DCG argues that Genesis has actually profited since its bankruptcy, particularly from the increased value of assets recovered from the failed crypto firm Three Arrows Capital. The lawsuit comes in response to Genesis's previous claim against DCG for $3.1 billion, alleging fraudulent transfers before its financial downfall. DCG contends that its obligations under the promissory note have been fully satisfied due to significant recoveries from Bitcoin and Grayscale Bitcoin Trust shares that have appreciated since 2022. Genesis paused withdrawals during the 2022 market downturn after lending extensively to troubled firms like Three Arrows Capital and FTX-affiliated Alameda Research. DCG seeks judicial confirmation that its obligations related to the loan have been met, while maintaining that Genesis has profitably emerged post-collapse.

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