Genesis has initiated two lawsuits against its parent company, Digital Currency Group (DCG), and CEO Barry Silbert, alleging fraud and mismanagement that led to significant financial losses. According to court documents, DCG is accused of using Genesis as a source for self-serving loans and concealed transfers, resulting in the misappropriation of over $3.3 billion. The lawsuits highlight that more than a million digital coins valued at approximately $2.1 billion were transferred out as Genesis neared insolvency, while it still owes creditors around $2.2 billion in various cryptocurrencies and fees. Key decisions by Silbert and other executives reportedly prioritizing DCG's interests over those of Genesis depositors raised serious concerns about the lack of oversight and risk management. The filing also mentions a series of withdrawals totaling $1.2 billion by DCG during key market distress periods, leaving retail and institutional creditors vulnerable. Genesis's pursuit of recovery through these legal actions seeks to address claims of financial mismanagement and insider wrongdoing.

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