Bitcoin News Today: DCG Sues Genesis for $105 Million from 2022 Promissory Note

Digital Currency Group (DCG) has filed a lawsuit against its former subsidiary, Genesis Global Capital, seeking $105 million in repayment from a $1.1 billion promissory note issued in 2022 during the aftermath of the Three Arrows Capital (3AC) collapse. The note was provided to stabilize Genesis after a $2.36 billion shortfall in book value triggered by 3AC’s failure to meet a margin call [1]. DCG claims that subsequent asset recoveries from the 3AC collateral have reduced the principal amount, justifying its claim for repayment [4].

The legal action follows Genesis’ 2024 bankruptcy reorganization plan, which distributed $4 billion in assets to creditors, leaving equity holders like DCG with no repayment [1]. DCG argues the plan improperly prioritizes creditors over equity investors, who are typically last in line for any remaining assets [1]. The dispute has since escalated into a broader financial and legal conflict between the two entities.

Genesis, now under the guidance of its Litigation Oversight Committee, has filed counterclaims against DCG and CEO Barry Silbert, accusing them of mismanagement and fraud leading up to the 2023 bankruptcy [4]. In its counterclaims, Genesis initially sought the return of at least $2.2 billion in crypto assets from DCG [4]. The ongoing legal battle is emblematic of the growing trend of internal disputes in the crypto industry following the collapse of 3AC, exposing deep fractures in financial accountability and corporate governance [3].

Industry observers have noted the absence of public commentary from key executives or prominent figures, indicating that the dispute may remain confined to legal rather than public relations dimensions [4]. Analysts have also suggested that the case could signal a broader shift in regulatory attention, particularly concerning crypto lending practices and the handling of collateralized assets [1].

As of August 15, 2025, Bitcoin (BTC) is trading at $117,228.96 with a market cap of $2.33 trillion and a 58.96% dominance in the crypto market. The 24-hour trading volume stands at $68.78 billion, reflecting a 34.31% decline from previous periods. BTC has dropped 1.15% in the last 24 hours but has risen 13.59% over the past 90 days [3].

The DCG v. Genesis case underscores the long-term financial implications of the 2022 crypto crisis and highlights the persistent entanglements between the two firms. The outcome of this legal matter could influence similar disputes and potentially shape future legal and regulatory frameworks in the crypto industry [4].

Source:

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

[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/