On May 20, according to Bloomberg, crypto lending institution Genesis Global Capital sued its parent company Digital Currency Group (DCG), seeking to recover over $1 billion in fund transfers made within one year before filing for bankruptcy.
Genesis filed a 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 his associates, transferred funds among themselves during the period when the company was insolvent.
The company hopes to classify these transfers as "preferential payments" under bankruptcy law, thereby rescinding and recovering the related amounts. These cryptocurrency payments are valued at over $582 million, with the total amount of preferential transfers exceeding $1.2 billion (based on current data).
