DCG Sues Genesis Over $1.1 Billion Promissory Note
Digital Currency Group (DCG) has filed a lawsuit against subsidiaries Genesis Global Capital and Genesis Asia Pacific concerning a $1.1 billion promissory note. The note was issued in 2022 to cover potential losses from the Three Arrows Capital (3AC) default.
DCG alleges that Genesis profited from the 3AC recovery, primarily through Grayscale Bitcoin Trust shares, and should return payments made on the note. This is the latest in a series of legal disputes, with Genesis previously suing DCG for $3.3 billion over alleged fraud. The intertwined financial issues highlight the complexities arising from the 2022 crypto market downturn.