Bloomberg: Genesis Sues Parent Company DCG, Seeks Recovery of Over $1 Billion in Transfers in the Year Leading to Bankruptcy Filing

BlockBeats News, May 20th, according to Bloomberg, cryptocurrency lending institution Genesis Global Capital has sued its parent company Digital Currency Group (DCG), seeking to recover over $1 billion in fund transfers conducted within a year before filing for bankruptcy.

Genesis filed the lawsuit on Monday in the U.S. Bankruptcy Court for the Southern District of New York, alleging that insiders, including DCG, DCG founder Barry Silbert, and affiliates, engaged in fund transfers during the company's insolvency.

The company seeks to have these transfers designated as "preferential payments" under bankruptcy law to undo and recover the related amounts. These cryptocurrency payments amount to over $582 million, while the total of preferential transfers exceeds $1.2 billion (as of the latest data).