Dcg Counsues Genesis for $ 1.1 billion after a sub -claim of $ 3.1 billion star-news.press/wp

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August 16, 2025

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Digital currency group (DCG) has escalated its legal battle with Genesis Global Capital, the bankrupt, Doubling It requires $ 1.1 billion of relief from earnings and $ 105 million in alleged extra payments.

The move comes at a time when Genesis follows more than $ 3.1 billion of damage against its mother company through multiple continuous lawsuits.

Three capital shares collapse corporate war

The conflict dates back to June 2022, when three capital shares left the amount of $ 2.36 billion as loans of Genesis.

DCG voluntarily released a $ 1.1 billion permission for a potential loss of the hedging fund.

The memo contains automatic discount provisions associated with any recovery of Three Arrows Capital.

After that, Genesis regained approximately $ 2.8 billion from Three Arrows Capital, especially through GBTC shares, which rose from $ 428.5 million to more than $ 2.1 billion by May 2024.

DCG claims that these recovery operations have automatically reduced the director of the ear observation to zero under the original terms of the agreement.

Despite the alleged main reduction, DCG continued payment of $ 106 million payments for a composition under what he calls “misunderstanding” regarding the remaining balance of observation.

The parent company is now seeking to recover these funds in addition to the interest through four legal charges, including the definition and an unfair enrichment.

The legal war intensified after the bankruptcy of Genesis in January 2023 after the accumulation of debts of $ 3.5 billion.

The previously approved court documents revealed that DCG executives are afraid that the Genesis will be treated as “the variable ego” early in 2022, with the financial manager Michael Crane warning of the scenarios of potential corporate veil.

GENESIS has installed its own attack, as it followed $ 2.2 billion of encryption assets through the Dilayer courts and more than a billion dollars in alleged fraudulent transfers through the bankruptcy court in New York.

The sub -claim extracted DCG $ 450 million of encryption assets and $ 297 million through international transfers, while formation faced liquidity strain.

The Securities and Exchange Committee joined the Fray in January 2025, where I was strangely 38 million DCG for securities and former CEO of Genesis Michael MORO $ 500,000 to misleading investors on the company’s financial health after the collapse of three Arrows Capital.

The organizational procedure revealed that DCG executives knew more than one billion dollars in Genesis losses during the filming of financial stability.

Objects to monitor companies and financial engineering

The internal documents published by the Grainis Paint Dcg Advocacy Committee as they deal with it as a “actual treasury” while extracting value through internal loans and risky trades.

Genesis staff described “a culture of presentation” as they served DCG interests as their operational safety.

The DCG Risk Committee delayed its first meeting for nine months after the formation, as Kraya later joked that the delay made “his deposit in the future easier.”

External auditors reported “physical weaknesses” in the Genesis early in 2020, yet the parent company claimed money extracting.

The committee claims that DCG organized fraudulent transactions, including Note Consissory in June 2022, and a back and forth deal in September is designed to hide the bachelor of financial training.

Genesis claims that he was already insolvent by the end of 2021, despite carrying $ 14 billion in suspended loans.

Consulting Company Oliver and Iman DCG warned of the financial weakness of Genesis in November 2021, but the parent company failed to implement corrective measures.

Instead, internal messages from 2022 indicate that employees believe that the Genesis is “supported” so that DCG can extract cash before collapse.

It is worth noting that Genesis has made great progress in returning money to creditors despite the ongoing legal battles.

The company distributed $ 2.18 billion to nearly 232,000 users by May 2024, including by a suspended settlement of $ 1.8 billion with GEINI won the participants.

DCG has previously settled more than a billion dollars of debt, including $ 627 million due to Genesis by January 2024, after the November 2023 agreement reached after being prosecuting to pay loans.

The parent company left more than $ 620 million of debt by May 2023.

As now, multiple legal procedures continue as both companies are transferred to restructuring bankruptcy, organizational enforcement, and billions of creditors claims to collapse the encryption market 2022.