Odaily News Crypto lender Genesis Global Capital is suing its parent company Digital Currency Group (DCG) to recover more than $1 billion in fund transfers made in the year before it filed 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 their affiliates transferred funds to each other during the company's insolvency.
The company hopes to have these transfers classified as "preference payments" under bankruptcy law, thereby revoking and recovering the relevant amounts. These cryptocurrency payments are worth more than $582 million, while the total amount of preference transfers exceeds $1.2 billion (as of now). (Bloomberg)