DCG sues subsidiary Genesis for over $105 million

PANews reported on August 15th that Digital Currency Group ( DCG) has filed a lawsuit against its subsidiary, Genesis Global Capital , in the U.S. Bankruptcy Court for the Southern District of New York , seeking over $105 million plus interest. The lawsuit alleges that DCG provided Genesis with a $1.1 billion promissory note to cover the shortfall in Genesis's assets resulting from the 2022 default of Three Arrows Capital ( 3AC ) . Genesis subsequently received substantial returns from TAC Collateral , exceeding the initial amount of the promissory note. Genesis had previously completed bankruptcy reorganization and begun distributing approximately $4 billion in assets to creditors. It also sued DCG and its executives for $2.1 billion.