Digital Currency Group Sues Genesis to Nix $1.1 Billion Note (3)

Barry Silbert’s Digital Currency Group Inc. sued bankrupt subsidiary Genesis Global Capital LLC to zero out a $1.1 billion note it issued to the fallen crypto lender.

The obligations under the promissory note have been reduced to zero because Genesis already received recoveries from a defaulted loan it made to defunct crypto hedge fund Three Arrows Capital that satisfy that debt, DCG said in a suit filed Thursday in the US Bankruptcy Court for the Southern District of New York.

Genesis received large recoveries from the appreciation and liquidation of collateral from Three Arrows, mostly shares of Grayscale Bitcoin Trust, ...