Overview

• DCG filed a complaint on Aug. 14 in the U.S. Bankruptcy Court for the Southern District of New York seeking confirmation that Genesis owes over $105 million plus interest on a 2022 promissory note.
• The $1.1 billion note was a voluntary capital infusion by DCG after Three Arrows Capital’s $2.36 billion default created an equity gap at Genesis Asia Pacific.
• DCG argues that gains on recovered collateral tied to Three Arrows automatically reduced the note’s principal to about $105 million as markets rebounded.
• Genesis, which entered Chapter 11 in early 2023 and has distributed roughly $4 billion to creditors, disputes DCG’s accounting and is pursuing its own multibillion-dollar claims against DCG and executives.
• A court ruling on the note’s status will shape how remaining assets are allocated between creditors and DCG as an equity holder and influence other intra-group litigation outcomes.