1 year ago
Crypto speech Bitvavo is expecting Digital Currency Group (DCG) to repay astatine slightest 80% of its indebtedness to the exchange, according to a Reuters report.
DCG owes €280 cardinal to Bitvavo — which equates to implicit $300 cardinal — arsenic stated successful the Reuters article. Bitvavo said:
“The effect submitted to the tribunal amounts to an expected betterment complaint of betwixt 80-100% which volition beryllium repaid successful cash, integer assets, currency and convertible preferred equity notes successful DCG.”
The speech expects the statement to beryllium finalized successful the coming weeks arsenic soon arsenic the details are worked out.
On Jan. 10, the speech rejected DCG’s proposal to wage 70% of its indebtedness to Bitvavo. Bitvavo argued that the DCG had capable funds to marque afloat payment.
DCG settles with Genesis and Gemini
Bitvavo’s supra connection followed an in-principle agreement betwixt DCG, its lender Genesis, and crypto speech Gemini.
Genesis volition either merchantability the institution oregon crook implicit its equity to creditors to screen its debt, according to the agreement.
Meanwhile, Gemini volition lend $100 cardinal to assistance supply liquidity to Gemini Earn users.
DCG sold Grayscale shares astatine $8 per stock connected Feb. 7, raising astir $22 million.
Background
The sides person been successful a quarrel since November 2022. Genesis took a dense interaction from the Terra-Luna clang successful May 2022 and ended up halting withdrawals connected Nov. 16. Two months later; the lender laid off 30% of its staff, which raised concerns regarding the company’s insolvency.
Genesis was 1 of the partners of Gemini’s Earn Program, which started having liquidity troubles successful precocious December aft Genesis halted withdrawals. Gemini founders Cameron and Tyler Winklevoss claimed that DCG laminitis Barry Silbert owes Genesis $1.675 billion, and a portion of his indebtedness belonged to Gemini Earn users.
The station Bitvavo expected to person astatine slightest 80% of DCG’s debt appeared archetypal connected CryptoSlate.
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