Genesis has filed lawsuits against Digital Currency Group (DCG) and its CEO, Barry Silbert, alleging fraud and mismanagement. The complaint accuses DCG of draining funds from Genesis, leading to its bankruptcy. The lawsuit claims that over $2.1 billion in digital coins were funneled away, leaving creditors owed around $2.2 billion in crypto assets. The core of the lawsuit revolves around reckless lending practices benefiting DCG's Grayscale Investments. Genesis operated without oversight, with insiders orchestrating sham transactions to deceive lenders. The complaint also highlights the forced acceptance of illiquid assets as collateral, creating valuation risks. DCG, Silbert, and other executives are named as defendants in the lawsuit. Genesis seeks to recover over $3.3 billion through the legal actions. The lawsuits come after a New York judge allowed a civil fraud lawsuit against DCG and its executives to proceed. Read more AI-generated news on: https://app.chaingpt.org/news