DCG Sues Genesis Over $105M Promissory Note Dispute Amid Bankruptcy Proceedings

Digital Currency Group has escalated its financial feud with subsidiary Genesis Global Capital, filing a lawsuit to recover $105 million plus interest from a controversial promissory note. The legal action stems from DCG's emergency intervention during 2022's crypto liquidity crisis, when the collapse of Three Arrows Capital left Genesis exposed to $2.36 billion in defaulted loans.

Court documents reveal DCG voluntarily issued a $1.1 billion promissory note to stabilize Genesis' Asia Pacific operations. The current dispute centers on DCG's claim that subsequent market recovery generated windfall gains from 3AC collateral that should have reduced the outstanding balance. This legal maneuver follows Genesis' own January lawsuit alleging improper fund transfers by DCG executives.