Overview

• DCG filed its complaint on Aug. 14 in the U.S. Bankruptcy Court for the Southern District of New York seeking a declaration that Genesis owes $105 million plus interest under a 2022 $1.1 billion promissory note.
• The parent company argues that gains on collateral seized from Three Arrows Capital have surpassed the note’s principal and automatically reduced its outstanding balance.
• This suit follows Genesis’s May litigation oversight committee action against DCG and CEO Barry Silbert for roughly $3.1 billion in alleged fraudulent transfers.
• Genesis entered Chapter 11 in early 2023 and has distributed about $4 billion to creditors under court supervision, with DCG, as an equity holder, contesting parts of the repayment plan.
• Judge decisions on these cross-claims will shape final creditor recoveries and set precedents for intra-group support and creditor priority in crypto bankruptcies.