Digital Currency Group sues subsidiaries over $1.1B promissory note
The latest legal battle between Digital Currency Group and Genesis centered on a promissory note issued amid the collapse of Three Arrows Capital in 2022.
Venture capital firm Digital Currency Group (DCG), the parent company of many entities tied to cryptocurrency and blockchain, has filed a complaint against two of its subsidiaries over a promissory note to guard against the 2022 default of Three Arrows Capital (3AC).
In a Thursday filing in the US Bankruptcy Court for the Southern District of New York, DCG alleged that Genesis Global Capital and Genesis Asia Pacific, both under the venture capital firm, owed their parent company overpayments based on recoveries from 3AC.
The complaint said that DCG issued a $1.1 billion promissory note to the Genesis entities, which profited by “hundreds of millions of dollars“ without suffering any loss from the default of 3AC in 2022.