According to ChainCatcher, The Block reported that the global investment firm Digital Currency Group (DCG) is suing its subsidiary Genesis Global Capital LLC because DCG provided a $1.1 billion guarantee to support the now-bankrupt Genesis during the last cryptocurrency crash.
DCG stated in a lawsuit filed in the Southern District of New York bankruptcy court that the company attempted to cover a potential 'gap' with this $1.1 billion promissory note, a measure taken in response to the collapse of the cryptocurrency hedge fund Three Arrows Capital in 2022. DCG noted that Three Arrows Capital was one of Genesis's largest borrowers.
DCG is seeking a court order for Genesis Global Capital to pay it over $105 million plus interest.
