Genesis sues its parent company DCG for recovering over $1 billion in transfers, accusing it of internal transmission during periods of insolvency Genesis Global Capital, a bankrupt cryptocurrency lending platform, sued its parent company Digital Currency Group (DCG) on May 19 in the Southern District Bankruptcy Court of New York, seeking to recover approximately $1.2 billion in "preference transfers" and fraudulent payments prior to bankruptcy in 2022. The lawsuit alleges that DCG and its affiliates, including founder Barry Silbert, transferred funds to each other in the event of Genesis' insolvency, including over $580 million in encrypted assets and $120 million in cash to DCG itself, international subsidiaries, and its subsidiary HQ Enhanced Yield Fund, as well as $34 million in taxes. Genesis claimed that DCG was aware of the risks at the time and misled users. The transfer occurred during the collapse of Terra Luna, Three Arrows Capital, and FTX, with the aim of self-protection and debt avoidance.