Bloomberg: Genesis sues DCG to recover over $1 billion in pre-bankruptcy transfers

2025-05-20 08:03:56
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ChainCatcher news, according to Bloomberg, the crypto lending institution Genesis Global Capital has sued its parent company Digital Currency Group (DCG) to recover over $1 billion in fund transfers made within a year prior to filing for bankruptcy.

Genesis filed the lawsuit on Monday in the U.S. Bankruptcy Court for the Southern District of New York, claiming that insiders, including DCG, DCG founder Barry Silbert, and their affiliates, transferred funds among themselves while the company was insolvent.

The company seeks to have these transfers classified as "preferential payments" under bankruptcy law, allowing them to reverse and recover the related amounts. These cryptocurrency payments are valued at over $582 million, while the total amount of preferential transfers exceeds $1.2 billion.

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