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DCG Sues Subsidiary Genesis for Claims Exceeding $1.05 Billion
BlockBeats News, August 15th, according to The Block, global investment firm Digital Currency Group (DCG) is suing its subsidiary Genesis Global Capital LLC, citing DCG's provision of $1.1 billion in collateral to support the now-bankrupt Genesis during the last cryptocurrency crash.
DCG stated in the lawsuit filed in the Southern District of New York bankruptcy court that the company had attempted to fill a potential "gap" through this $1.1 billion promissory note, a measure taken in response to the 2022 crypto hedge fund collapse of Three Arrows Capital. DCG noted that Three Arrows Capital was one of Genesis's largest borrowers.
DCG is requesting the court to order Genesis Global Capital to pay it over $105 million plus interest.
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