Civil war among crypto 'giants': Digital Currency Group sues its subsidiary Genesis over a $1.1 billion loan

Digital Currency Group (#DCG ) has just filed a lawsuit against its subsidiary Genesis, a crypto lending organization that went bankrupt in 2023. The reason revolves around a $1.1 billion loan that DCG provided to rescue Genesis after the market shock of 2022.

In the lawsuit, DCG asserts that the value of assets recovered from Three Arrows Capital (3AC) – including Bitcoin and Grayscale Bitcoin Trust shares – has surged, helping Genesis not only to cover all losses but also to profit by hundreds of millions of USD. DCG requests the court to confirm that obligations under the 'promissory note' have been fully paid.

Genesis – once the 'lending arm' of DCG – collapsed after being entangled with massive loans to 3AC, Alameda Research, and suffered a chain reaction from the collapses of Terra and FTX. In May 2024, Genesis had previously counter-sued DCG, accusing the group and CEO Barry Silbert of committing fraud, demanding $3.1 billion in damages.

This new development further complicates the tense relationship between DCG and #Genesis , as both sides continuously blame each other in a series of lawsuits that have persisted since the 'crypto winter' of 2022.

👉 The lawsuit indicates that even the 'big players' in the cryptocurrency industry cannot escape the consequences of historical crashes, and the legal battle between DCG and Genesis may still continue. #anh_ba_cong