Digital Currency Group (DCG) has initiated a lawsuit against its subsidiary, Genesis, claiming that the $1.1 billion loan provided in 2022 was more than sufficient to cover the losses following Genesis's collapse. Genesis, a crypto lender, declared bankruptcy in 2023 after incurring losses from lending to companies like Three Arrows Capital during a market downturn. DCG asserts that Genesis has actually profited from the situation due to the appreciation in the value of recovered collateral, primarily Bitcoin and shares in the Grayscale Bitcoin Trust. Consequently, DCG argues that Genesis has not suffered losses but has instead gained hundreds of millions of dollars. The lawsuit follows Genesis's own legal action against DCG for $3.1 billion, accusing the company of fraudulent transfers as its financial condition worsened. DCG maintains that it has fulfilled its contractual obligations regarding the loan and seeks judicial confirmation of this claim.

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