Digital Currency Group (DCG) has initiated legal action against its bankrupt lending arm, Genesis Global Capital LLC, seeking repayment related to a $1.1 billion support package issued during the crypto market crash of 2022.
The lawsuit, filed Thursday in the U.S. Bankruptcy Court for the Southern District of New York, claims the funds were provided to offset the financial damage caused by the collapse of Three Arrows Capital (3AC), The Block reported on Friday.
Genesis, a major lender to 3AC, suffered a $2.36 billion default after the hedge fund failed to meet a margin call in 2022. …