Dutch trade Bitvavo rejects DCG’s proposal to repay 70% of debt


Cryptocurrency trade Bitvavo, a significant creditor of the troubled crypto firm Digital Foreign money Group (DCG), has dismissed DCG’s proposal of partial debt reimbursement.

Bitvavo formally introduced on Jan. 11 that the agency acquired a counter proposal from DCG providing to repay about 70% of the excellent quantity in a time period acceptable to Bitvavo.

The remaining steadiness quantity continues to be underneath negotiation with DCG as it’s only able to repay a part of the debt inside a time period acceptable for Bitvavo, the trade mentioned, including:

“As collectors, we don’t discover the latter acceptable as a result of DCG has ample assets accessible for full reimbursement.”

Bitvavo emphasised that the present scenario relating to DCG has no impression on Bitvavo’s clients, its platform and its providers. “Bitvavo ensures the excellent quantity and has thus taken over the chance from its clients,” the agency famous.

The announcement got here quickly after Bitvavo determined to prefund about $290 million in belongings locked on DCG as a way to keep away from reliance on the troubled agency. The Dutch crypto trade mentioned that it had sufficient assets to proceed serving its clients with no disruption. The trade expects DCG to refund excellent balances regardless of the latter experiencing an enormous liquidity disaster amid the bear market.

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Within the newest assertion, Bitvavo talked about an identical scenario confronted by Winklevoss brothers’ crypto trade Gemini. On Jan. 10, Cameron Winklevoss wrote a public letter to the DCG board, accusing CEO Barry Silbert of fraud and calling for changing the exec as CEO. With DCG and its crypto lending subsidiary Genesis owing Gemini $900 million, Gemini founders are assured that there’s nonetheless a risk of a optimistic resolution to the satisfaction of all events concerned.

“Like Gemini, we share the arrogance {that a} resolution will be discovered to the satisfaction of all concerned,” Bitvavo famous.

Associated: It will be OK: DCG disaster seemingly received’t ‘embrace a whole lot of promoting’ — Novogratz

DCG and Genesis are amongst main crypto trade firms affected by the large contagion following the collapse of FTX crypto trade in November. The scenario grew to become extra gloomy for DCG after the USA’ Division of Justice reportedly launched an investigation in opposition to the agency in cooperation with the Securities and Change Fee.

On Jan. 10, DCG’s Silbert wrote a public letter to shareholders defending his choices and offering particulars of a number of loans from Genesis and relationships with companies like Three Arrows Capital.


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