Crypto Journalist

Anas Hassan

Crypto Journalist

Anas Hassan

About Author

Anas is a crypto native journalist and SEO writer with over five years of writing experience covering blockchain, crypto, DeFi, and emerging tech.

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Last updated: 

August 16, 2025

Digital Currency Group (DCG) has escalated its legal battle with bankrupt subsidiary Genesis Global Capital, filing a countersuit demanding $1.1 billion in promissory note relief and $105 million in alleged overpayments.

The move comes as Genesis pursues over $3.1 billion in damages against its parent company through multiple ongoing lawsuits.

Three Arrows Capital Collapse Sparks Corporate War

The conflict traces back to June 2022, when Three Arrows Capital defaulted on $2.36 billion in loans from Genesis.

DCG voluntarily issued a $1.1 billion promissory note to backstop potential losses from the hedge fund’s collapse.

The note contained automatic reduction provisions tied to any recoveries from Three Arrows Capital’s assets.

Genesis subsequently recovered nearly $2.8 billion from Three Arrows Capital, primarily through GBTC shares that surged from $428.5 million to over $2.1 billion by May 2024.

DCG claims these recoveries automatically reduced the promissory note’s principal to zero under the original agreement terms.

Despite the alleged principal reduction, DCG continued making payments totaling $106 million to Genesis under what it calls a “misapprehension” about the note’s remaining balance.

The parent company now seeks recovery of these funds plus interest through four legal counts, including declaratory judgment and unjust enrichment.

The legal warfare intensified following Genesis’s bankruptcy filing in January 2023 after accumulating $3.5 billion in debts.

Previously unsealed court documents reveal DCG executives feared Genesis could be treated as their “alter ego” as early as 2022, with CFO Michael Kraines warning about potential corporate veil piercing scenarios.

Genesis has mounted its own offensive, pursuing $2.2 billion in crypto assets through Delaware courts and over $1 billion in allegedly fraudulent transfers through the New York bankruptcy court.

The subsidiary claims DCG extracted $450 million in crypto assets and $297 million through international transfers while Genesis faced liquidity stress.

The Securities and Exchange Commission joined the fray in January 2025, fining DCG $38 million for securities violations and former Genesis CEO Michael Moro $500,000 for misleading investors about the company’s financial health following Three Arrows Capital’s collapse.

The regulatory action revealed DCG executives knew about over $1 billion in Genesis losses while portraying financial stability.

Corporate Control and Financial Engineering Allegations

Internal documents released by Genesis’s Litigation Oversight Committee paint DCG as treating its subsidiary like a “de facto treasury” while extracting value through insider loans and risky trades.

Genesis employees described a “culture of submission” where they served DCG’s interests over their own operational integrity.

DCG’s risk committee delayed its first meeting for nine months after formation, with Kraines later joking that the delay made his “future deposition easier.”

External auditors flagged “material weaknesses” at Genesis as early as 2020, yet the parent company allegedly continued extracting funds.

The committee alleges DCG orchestrated fraudulent transactions, including the June 2022 promissory note and a September round-trip deal designed to mask Genesis’s financial distress.

Genesis claims it was already insolvent by the end of 2021 despite carrying $14 billion in outstanding loans.

Consulting firm Oliver Wyman warned DCG about Genesis’s financial vulnerabilities in November 2021, but the parent company failed to implement corrective measures.

Instead, internal messages from 2022 indicate employees believed Genesis was being “propped up” so DCG could extract cash before the collapse.

Notably, Genesis has made substantial progress in returning funds to creditors despite the ongoing legal battles.

The company distributed $2.18 billion to approximately 232,000 users by May 2024, including through a pending $1.8 billion settlement with Gemini Earn participants.

DCG previously settled over $1 billion in debt, including $627 million owed to Genesis by January 2024, following a November 2023 agreement reached after Genesis sued for loan repayments.

The parent company had defaulted on over $620 million in debt by May 2023.

As it stands now, the multiple legal proceedings continue as both companies navigate bankruptcy restructuring, regulatory enforcement, and billions in creditor claims stemming from the 2022 crypto market collapse.

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.

Mentioned in this article

Two Ethereum wallets dormant for nearly a decade were activated on Monday, moving a combined 1,140 Ether tokens worth nearly $2.9 million.

The two wallets — one starting in “0x27” and the other “0x7f” — were created 3,630 days ago, on July 30, 2015. That date marked the mainnet launch of the Ethereum blockchain, a phase called “Frontier” in the history of the ecosystem. Both wallets received their inicial Ether (ETH) from transactions labeled as “GENESIS” on Etherscan, indicating they were funded at launch.

Ethereum debuted in 2015 as a proof-of-work blockchain, featuring traditional mining and block rewards akin to the Bitcoin network. It transitioned to a proof-of-stake mechanism in September 2022 during The Merge, a move aimed at reducing the energy usage required to run the network.

According to TradingView, ETH has appreciated 89,450% in the nearly 10 years that the wallets have remained dormant.

Crypto watchers have seen a wave of dormant whale wallets reawakening lately. On Friday, three Bitcoin (BTC) wallets that had been dormant for 14 years awakened and transferred billions of dollars in funds.

In 2024, dormant Satoshi-era Bitcoin wallets reawakened to transfer coins worth nearly $44 million at the time.

Related: Ethereum’s comeback strategy — Foundation exec reveals what’s next

Ethereum developments include Pectra upgrade, gas cap

Ethereum’s latest upgrade, called Pectra, has brought smart accounts, improved scalability, and higher staking limits to its ecosystem. Ethereum developers initiated the upgrade on May 7, and since then, the price of ETH has risen to $2,540 from $1,812, according to CoinMarketCap.

Vitalik Buterin has submitted further developments for the ecosystem. On Sunday, the Ethereum co-founder and researcher Toni Wahrstätter issued a proposal that contains a gas cap of 16.77 million for individual transactions.

According to the authors, this would increase Ethereum’s performance and security. “By implementing this limit, Ethereum can enhance its resilience against certain DoS vectors, improve network stability, and provide more predictability to transaction processing costs.”

Magazine: TradFi is building Ethereum L2s to tokenize trillions in RWAs — Inside story

]]> https://earlybirdsinvest.com/two-ethereum-genesis-wallets-wake-move-2-9m-eth/feed/ 0 46365 https://earlybirdsinvest.com/in-match3-to-launch-limited-time-genesis-battle-pack-sale/ https://earlybirdsinvest.com/in-match3-to-launch-limited-time-genesis-battle-pack-sale/#respond Wed, 12 Mar 2025 17:07:52 +0000 https://earlybirdsinvest.com/in-match3-to-launch-limited-time-genesis-battle-pack-sale/

Web3 game IN-Match3 has announced a five-day sale for its Genesis Battle Packs—a collection of single-use NFTs that provide in-game advantages.

Each NFT provides temporary in-game boosts, such as increased combat power, access to exclusive heroes, and VIP status. Once activated, these NFTs are consumed, meaning they are not permanent game assets but offer strategic advantages during gameplay.

The sale, running from March 15 to March 20, offers a 50% discount on these digital assets before they move to the secondary market.

What is IN-Match3?

IN-Match3 is a blockchain-based game that combines Match-3 puzzle mechanics with RPG and PvP elements. Players engage in battles by matching tiles to perform attacks, level up heroes, and acquire in-game resources.

The game includes competitive PvP tournaments, a ranking system, and cooperative play, allowing users to engage in strategic battles beyond traditional Match-3 gameplay. It operates on a web3 infrastructure, meaning all game assets, including heroes and upgrades, can be bought, sold, and traded as NFTs. The game’s economy is driven by the $TIN token, which players can use for various in-game transactions.

IN-Match3 has been recognised within the blockchain gaming industry, securing a Top-50 ranking on DappRadar and awards at the 2023 and 2024 P2E Game Awards.

How to mint a Genesis Battle Pack NFT?

The Genesis Battle Packs are available for minting from March 15 to March 20 through the official IN-Match3 marketplace. During this period, they can be purchased at a 50% discount, with the prices increasing once they are only available through secondary sales.

The collection includes five tiers, each offering different levels of in-game bonuses:

• Battle Surge Pack (£3) – Includes temporary combat boosts lasting three hours
• Emerald Initiate (£13) – Unlocks the Crusader hero, one month of VIP status, and combat boosts
• Azure Pathfinder (£144) – Grants the Archon hero, access to VOLCARR Mine, and three months of VIP status
• Amethyst Champion (£987) – Provides the Legend hero, access to RADIAR Mine, and six months of VIP status
• Crimson Overlord (£6,765) – Includes the Ancient hero, access to multiple in-game mines, and 12 months of VIP status

Players can mint as many NFTs as they choose during the sale. After 20 March, they will only be available for purchase on secondary marketplaces at prices set by individual sellers.

The Graph has just announced the early access launch of Geo Genesis, a new Web3 browser and knowledge graph application that puts information-sharing front and center. Instead of focusing solely on digital assets, Geo Genesis gives communities the tools to collaborate on knowledge.

The platform aims to show how users can work together to gather, verify, and shape fast-moving stories. By doing this, The Graph hopes to show that blockchain infrastructure can support fair community collaboration.

Inside Geo Genesis

At the core of Geo Genesis is a feature called “Spaces”. Each Space is like a shared workspace for a specific topic where users can submit ideas, fact check and refine information as needed. These Spaces use GRC-20 data standards so everyone can see when new content was added, who added it and how it might have changed over time.

Right now, Editors are using these Spaces to organize Crypto News stories so the wider community can watch how the content is governed. Over time, it’s likely that more Spaces will appear on different subjects, and each one can set up its own rules about what gets posted and how decisions are made.

Knowledge vs. Assets

Geo Genesis stands out because it treats knowledge as an essential resource rather than focusing on tokens, NFTs, or other digital assets. Many blockchain projects concentrate on speculation or trading, but The Graph envisions a decentralized approach to gathering facts and information.

Geo Genesis invites anyone to pool their expertise and verify what’s being posted. This could encourage a more active form of participation, where people feel responsible for making sure the information is trustworthy. As more users and groups join, Geo Genesis could grow into a larger network of knowledge Spaces, each shaped by the people who use it.

Governance with Aragon OSx

A big part of this is the governance framework provided by Aragon OSx. In early access, there are two main roles: Editors who vote on proposals and guide the overall direction of the content, and Members who submit new information.

In the future, these roles might be expanded or adapted depending on the community’s goals. For example, if a Space is about scientific research, it might use stricter rules to ensure accuracy. If a Space is about live events, the voting process might be faster to keep up with breaking news. This flexibility reduces misinformation by letting the community decide what works best for them and making every decision visible to everyone involved.

With the release of Geo Genesis, The Graph shows that Web3 technology can be about more than just financial exchanges. By giving people a way to build and oversee knowledge together, it points to a future where communities hold the reins.

Editor’s note: Written with the assistance of AI – Edited and fact-checked by Jason Newey.