DCG: "Genesis earned profits from collateral during 3AC collapse…$105 million must be returned"
Summary
- Digital Currency Group (DCG) filed a lawsuit against its subsidiary Genesis Global for $1.1 billion.
- DCG stated that after providing a promissory note during the 2022 3AC collapse and a rise in cryptocurrency prices, Genesis generated even greater profits.
- DCG has requested the return of over $105 million from Genesis, and the legal dispute between the two companies continues.
On the 15th (local time), according to crypto media outlet The Block, cryptocurrency investment firm Digital Currency Group (DCG) filed a lawsuit against its subsidiary Genesis Global for $1.1 billion.
DCG stated that during the collapse of 3AC (Three Arrows Capital) in 2022, it provided the amount to Genesis in the form of a promissory note to support it, and later claimed that the rise in cryptocurrency prices led Genesis to secure collateral from 3AC that yielded even greater profits than the value of the note.
Accordingly, DCG requested the court that Genesis should return more than $105 million.
Meanwhile, Genesis filed for bankruptcy in January 2023 due to the fallout from the collapse of FTX, and in May, it filed a $1.2 billion lawsuit against DCG, asserting that a large sum of money was wrongfully reclaimed by DCG shortly before bankruptcy.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
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