DCG Drags Genesis to Court Over $1.1B Promissory Note—Fallout From 3AC Collapse Rescue Deal
Digital Currency Group (DCG) just threw legal gasoline on its feud with Genesis—filing suit to claw back a $1.1B promissory note tied to their 2022 Three Arrows Capital bailout.
When 'lifelines' turn into liabilities
The note was originally pitched as a stabilizing move after 3AC's implosion vaporized crypto lender Genesis' balance sheet. Now DCG claims Genesis is improperly treating the debt—because when the music stops in crypto, even rescuer and rescuee turn on each other.
Bonus jab: Nothing bonds crypto bros like shared profits—and nothing divides them faster than shared losses.
Bitcoin Holders Lock In: Less Than 23% of BTC Moved in Six Months
DCG argues these gains, referred to as “TAC Recoveries,” should have reduced the note’s principal entirely. Instead, DCG now wants the court to enforce repayment, accusing Genesis of holding funds it no longer needs to cover the original shortfall.
