TechFlow news, June 25 — According to Cointelegraph, newly unsealed litigation documents from cryptocurrency lending platform Genesis reveal that executives at its parent company, Digital Currency Group (DCG), foresaw legal risks prior to Genesis's collapse but ignored multiple risk warnings. DCG's CFO, Michael Kraines, shared a "war game" memo with Genesis's former CEO, preparing for potential lawsuits. The documents also show that warnings from third-party risk consultants hired by DCG were disregarded, allowing Genesis's loan portfolio to balloon from $4 billion to $12 billion. An internal "culture of compliance" formed at Genesis, where employees were pressured to prioritize DCG's interests. Genesis is now seeking to recover over $3.3 billion from DCG, Barry Silbert, and other insiders.
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