According to Foresight News, recent court documents reveal that executives at Digital Currency Group (DCG) were aware of potential legal risks before the collapse of its cryptocurrency lending platform, Genesis. Despite warnings from multiple sources, including third-party risk advisors hired by DCG, these risks were overlooked, leading to a significant increase in Genesis's loan portfolio from $4 billion to $12 billion.
Currently, Genesis is attempting to recover over $3.3 billion in debts from DCG, its CEO Barry Silbert, and other internal figures. The documents highlight the negligence in addressing the risk warnings, which contributed to the financial challenges faced by Genesis.