Catenaa, Monday, August 18, 2025- Digital Currency Group has filed a lawsuit against its subsidiary Genesis Global Capital in a dispute over a $1.1 billion promissory note issued during the 2022 crypto crash.
The case was filed in the US Bankruptcy Court for the Southern District of New York.
DCG said the note was created to cover losses at Genesis after hedge fund Three Arrows Capital defaulted on $2.36 billion in obligations.
The group claimed it voluntarily injected support to fill a gap in Genesis’ balance sheet. With crypto markets later rebounding, Genesis reportedly realized gains from collateral tied to Three Arrows that DCG argues offset the original note.
Now, DCG is asking the court to confirm the note has been fully satisfied and is seeking repayment of more than $105 million plus interest. Genesis has rejected this view, saying DCG’s claim contradicts written agreements and prior representations to the bankruptcy court.
The lawsuit adds another chapter to a tense standoff between the two firms. Earlier this year, Genesis’ litigation committee sued DCG, its chief executive Barry Silbert, and other executives, alleging billions were improperly diverted in 2022.
Genesis filed for bankruptcy in 2023 after freezing lending operations following the collapse of TerraUSD, Three Arrows, and later FTX.
The firm completed a restructuring in 2024 and has begun distributing roughly $4 billion to creditors. DCG, as an equity holder, is last in line for repayment and has contested aspects of the plan.
