DCG sues subsidiary Genesis for over $105 million in claims

according to The Block, global investment firm Digital Currency Group (DCG) is suing its subsidiary Genesis Global Capital LLC for providing an $1.1 billion guarantee to support the now-bankrupt Genesis during the last cryptocurrency crash.

In a lawsuit filed in the U.S. Bankruptcy Court for the Southern District of New York, DCG stated that the company attempted to cover a potential "gap" with this $1.1 billion promissory note, which was a measure taken in response to the collapse of the cryptocurrency hedge fund Three Arrows Capital in 2022. DCG pointed out that Three Arrows Capital was one of Genesis's largest borrowers.

DCG is seeking a court order for Genesis Global Capital to pay it over $105 million plus interest.