Odaily Planet Daily News Crypto lending institution Genesis Global Capital sued its parent company Digital Currency Group (DCG) to recover more than $1 billion in fund transfers made in the year before filing for bankruptcy.
Genesis filed a lawsuit in the U.S. Bankruptcy Court for the Southern District of New York on Monday, claiming that insiders including DCG, DCG founder Barry Silbert and its affiliates transferred funds to each other during the company's insolvency.
The company hopes to recognize these transfers as "preferred payments" under bankruptcy law, thereby revoking and recovering the relevant amounts. These cryptocurrency payments are worth more than $582 million, and the total amount of preferred transfers is more than $1.2 billion (as of now). (Bloomberg)