Bitcoin News Today: DCG Sues Genesis for $105 Million Over 2022 Crypto Rescue Deal

Generated by AI AgentCoin World
Friday, Aug 15, 2025 7:51 pm ET1min read
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Aime RobotAime Summary

- DCG sues Genesis for $105M repayment, citing a 2022 $1.1B rescue loan after 3AC's collapse.

- Dispute arises from Genesis's 2024 bankruptcy plan, which prioritized creditors over DCG's equity stake.

- Genesis countersued DCG and CEO Silbert for alleged mismanagement, seeking $2.2B in crypto assets.

- The case highlights crypto industry's post-3AC legal battles and evolving regulatory scrutiny of lending practices.

Digital Currency Group (DCG) has filed a lawsuit against its former subsidiary Genesis Global Capital, seeking over $105 million in repayment plus interest related to a 2022 promissory note [1]. The legal action stems from a $1.1 billion note issued as part of a rescue agreement following the collapse of Three Arrows Capital (3AC) [3]. DCG claims it made a unilateral contribution to Genesis to address a $2.36 billion shortfall in the firm’s book value after 3AC defaulted on a margin call [4]. The firm further argues that subsequent recoveries from the 3AC collateral reduced the principal amount of the note, entitling DCG to repayment [4].

The dispute has escalated following Genesis’s bankruptcy reorganization in 2024, during which it distributed $4 billion in assets to creditors [1]. Despite this, DCG remains dissatisfied with the repayment plan, arguing it unfairly prioritizes creditors over equity holders. As an equity investor, DCG is last in line for any remaining payouts.

Genesis, through its Litigation Oversight Committee, previously filed counter-lawsuits in May 2025, accusing DCG and CEO Barry Silbert of mismanagement and fraud during the lead-up to its 2023 bankruptcy [4]. Genesis had initially sought to recover at least $2.2 billion in crypto assets from DCG [4]. The legal battle now represents a broader pattern of intra-firm lawsuits within the crypto industry following the 3AC collapse, highlighting ongoing disputes over financial responsibility [3].

The case has drawn attention from industry observers, who note the absence of public statements from key executives or industry figures involved [4]. The Coincu research team highlights that ongoing financial disputes in the crypto sector may signal changing regulatory approaches, with similar lawsuits contributing to increased scrutiny of crypto lending practices [1].

As of August 15, 2025,

Bitcoin
(BTC) is priced at $117,228.96, with a market cap of $2.33 trillion, representing a 58.96% market dominance [3]. The cryptocurrency has seen a 24-hour trading volume of $68.78 billion, down 34.31%. BTC prices decreased by 1.15% over the past 24 hours but are up 13.59% over 90 days [3].

The legal dispute underscores the complex aftermath of the 2022 crypto crisis and highlights the ongoing financial entanglements between DCG and Genesis. The outcome of the case could have broader implications for similar post-bankruptcy negotiations in the crypto sector [4].

Source: [1] https://financefeeds.com/dcg-sues-genesis-over-105-million-dispute-from-2022-crypto-rescue/

[2] https://cointelegraph.com/news/digital-currency-group-lawsuit-genesis-promissory-note

[3] https://coincentral.com/digital-currency-group-sues-genesis-for-over-1-1b-in-promissory-note/

[4] https://thecoinrise.com/dcg-sues-genesis-global-capital-over-1-1b-promissory-note/