Digital Currency Group (DCG) has sued its lending subsidiary Genesis, asking a bankruptcy court to confirm it is owed more than $105 million plus interest on a financial backstop extended during the 2022 crypto downturn.

The case, filed on Aug. 14 in the U.S. Bankruptcy Court for the Southern District of New York, centers on a $1.1 billion promissory note DCG issued to Genesis after the implosion of hedge fund Three Arrows Capital (3AC).

According to the complaint, 3AC, one of Genesis’s largest borrowers, defaulted on a $2.36 billion margin call in mid-2022, creating a significant deficit in Genesis Asia Pacific’s equity, a DCG-owned entity.

DCG said it injected the note “voluntarily” to stabilize the business, but argued that when crypto markets rebounded, Genesis profited from collateral tied to 3AC far beyond the note’s original value. Those gains, it contends, reduced the principal balance and now leave $105 million outstanding.

In a statement, DCG said it “took extraordinary efforts” to keep Genesis afloat in 2022 and simply wants the court to “confirm” repayment status.

The filing adds another dispute to the strained relationship between the two companies. Earlier this year, Genesis’s litigation oversight committee sued DCG, its CEO Barry Silbert, and other executives, alleging that billions of dollars were wrongfully taken from the lender in 2022.

Genesis, one of several high-profile firms to collapse in the wake of the FTX bankruptcy, halted lending in late 2022 and filed for Chapter 11 protection in early 2023.

It emerged from restructuring last year and began distributing roughly $4 billion to creditors, with recovery amounts varying by asset type. As an equity holder, DCG is among the last to be repaid and has challenged parts of the bankruptcy plan.

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The former CEO of the crypto titan Binance is reportedly taking action to terminate the lawsuit filed by the bankruptcy estate of the collapsed digital asset exchange FTX.

In November, the FTX trust and FTX Digital Markets filed a suit against Binance, the exchange’s co-founder Changpeng Zhao and several other executives over a July 2021 share repurchase deal with FTX founder Sam Bankman-Fried.

Bloomberg reports that Zhao is now asking the US Bankruptcy Court for the District of Delaware to dismiss the claims seeking to claw back $1.76 billion that the trust and FTX Digital Markets say were improperly transferred by Bankman-Fried.

In a motion to dismiss filed on Monday, Zhao says the court does not have personal jurisdiction over him because of improper and ineffective service.

The motion argues that Zhao is a resident of the United Arab Emirates and, under the bankruptcy law, serving US counsel on a foreign defendant is improper and invalidates the complaint.

“The claims are so far removed from Delaware, and even the United States, that the statutes at issue, which lack extraterritorial application, do not even apply.”

The filing also says that the bankruptcy law does not definitively extend to foreign transfers, but the trust and FTX Digital Markets improperly attempt to extend their fraudulent transfer claims abroad.

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Alex Mashinsky, the former CEO of Celsius, has agreed to surrender all rights to assets tied to the collapsed crypto lender.

According to newly filed court documents, Mashinsky and entities associated with him, including AM Ventures Holdings Inc., Koala1 LLC, and Koala3 LLC, will be excluded from any future distributions under the Celsius bankruptcy plan.

The filing stated:

“All Claims asserted by, or scheduled by the Debtors on behalf of, (1) Mr. Mashinsky, (2) AMV, (3) Koala1, and (4) Koala3 are withdrawn, disallowed, and shall receive no distribution under the Plan.”

The document also stated that the funds freed from the forfeiture should be redistributed to affected customers and creditors.

This development marks another chapter in Celsius’s ongoing bankruptcy proceedings, which began in mid-2022 following the platform’s abrupt suspension of withdrawals.

So far, Celsius has returned roughly $2.53 billion to users. Approximately 70% of creditors have received some form of repayment, but the process has been lengthy and complex.

Celsius bankruptcy

Celsius halted user withdrawals in June 2022, locking up nearly $4.7 billion in customer funds, amid the market instability driven by LUNA’s collapse in the prior month.

The company was forced to file for Chapter 11 bankruptcy in July 2022, triggering investigations into its financial practices and the conduct of its leadership.

Mashinsky was arrested in 2023 over several fraud-related charges and later pleaded guilty as part of his legal proceedings. Prosecutors claimed that he misled investors about the company’s financial health while offloading personal holdings of Celsius’s native token. They added that his actions gave users false confidence even as the platform was nearing collapse.

Last month, Mashinsky was sentenced to 12 years in prison, avoiding the 20-year term prosecutors had pursued. His defense argued that a longer sentence would amount to life imprisonment for the 59-year-old.

His downfall joins a growing list of disgraced crypto leaders, including FTX’s Sam Bankman-Fried and Terra’s Do Kwon, who were once industry icons whose collapses have reshaped public and regulatory perceptions of digital assets.

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Financial giant Goldman Sachs is reportedly taking legal action against an unaffiliated bankruptcy specialist who has been running a side company called “Goldman Sachs Capital LLC.”

The Wall Street Journal reports that Arian Eghbali, 40, registered Goldman Sachs Capital with the California Secretary of State’s office in 2022, listing himself as the firm’s chief executive in 2024.

Nick Carcaterra, a spokesperson at the actual Goldman Sachs, tells the WSJ that Eghbali hasn’t worked for the financial giant, which is taking action regarding the use of its name.

Eghbali reportedly represents trade creditors through his firm Olympus Guardians and is involved in numerous cases related to high-profile companies like Forever 21, Hooters and Virgin Orbit.

The California businessman tells the WSJ he considered embarking on a business venture that he thought would receive funds from the actual Goldman Sachs, so he registered Goldman Sachs Capital.

That venture didn’t materialize, and Eghbali has since used the LLC to maximize employee retention credits (ERCs), refundable tax credits designed to encourage employers to keep on employees during the pandemic.

Carcaterra, however, tells the WSJ that Eghbali’s reasoning for registering Goldman Sachs Capital does not follow logic.

A representative for the California Secretary of State’s Office tells the WSJ that it doesn’t regulate brand or intellectual-property issues and only cross-checks registrations against names that are already in its system, not national brands.

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Bankrupt FTX has received court approval to reject creditor claims from users who failed to begin the Know Your Customer (KYC) process before March 3, 2025.

The April 2 court filing includes 2,378 pages of invalidated claims, representing around 500,000 entries. The court order clearly disallows any claim listed that is not backed by KYC compliance.

According to the filing:

“In accordance with the Order, each claim set forth on Exhibit A attached hereto has been expunged and disallowed in its entirety.”

FTX creditors were previously advised to complete KYC steps to retain eligibility for payouts.

Sunil Kavuri, a known activist for the creditor community, stated on social media that more claims will be removed after June 1 if required documentation remains missing.

He added that the exchange could disqualify up to $655 million in claims under $50,000 and around $1.9 billion in more significant claims if users fail to submit KYC documents.

Another FTX creditor advocate, who goes by the alias “Mr Purple,” shared a slightly different perspective. He noted that out of 457,000 smaller claims, the estimated value stood at $344 million. Based on updated figures, he believes FTX’s total liabilities may drop by roughly $300 million.

FTX bankruptcy process

This update comes just weeks before FTX begins processing repayments for claims exceeding $50,000, scheduled to start on May 30.

The move marks a significant step forward in the lengthy and contentious bankruptcy case that began in November 2022.

Meanwhile, creditors with smaller claims, labeled “convenience claims” by the estate, have already received payments in February.

Backpack, the exchange that acquired FTX’s European unit, has also begun assisting affected users. Former FTX EU customers have been asked to create accounts, submit KYC documents, and link their old claim data to the new platform.

However, the platform has yet to provide a timeline for when it would begin the repayment.

Despite these developments, creditors in countries like China, Russia, Egypt, Nigeria, and Ukraine remain excluded from all distributions.

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