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

Cryptocurrency speech Bitvavo, a large creditor of the troubled crypto institution Digital Currency Group (DCG), has dismissed DCG’s connection of partial indebtedness repayment.

Bitvavo officially announced connected Jan. 11 that the steadfast received a antagonistic connection from DCG offering to repay astir 70% of the outstanding magnitude successful a word acceptable to Bitvavo.

The remaining equilibrium magnitude is inactive nether dialog with DCG arsenic it is lone acceptable to repay portion of the indebtedness wrong a word acceptable for Bitvavo, the speech said, adding:

“As creditors, we bash not find the second acceptable due to the fact that DCG has capable resources disposable for afloat repayment.”

Bitvavo emphasized that the existent concern regarding DCG has nary interaction connected Bitvavo's customers, its level and its services. “Bitvavo guarantees the outstanding magnitude and has frankincense taken implicit the hazard from its customers,” the steadfast noted.

The announcement came soon aft Bitvavo decided to prefund astir $290 cardinal successful assets locked connected DCG successful bid to debar reliance connected the troubled firm. The Dutch crypto speech said that it had capable resources to proceed serving its customers with nary disruption. The speech expects DCG to refund outstanding balances contempt the second experiencing a monolithic liquidity situation amid the carnivore market.

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In the latest statement, Bitvavo mentioned a akin concern faced by Winklevoss brothers’ crypto speech Gemini. On Jan. 10, Cameron Winklevoss wrote a nationalist missive to the DCG board, accusing CEO Barry Silbert of fraud and calling for replacing the exec arsenic CEO. With DCG and its crypto lending subsidiary Genesis owing Gemini $900 million, Gemini founders are assured that there’s inactive a anticipation of a affirmative solution to the restitution of each parties involved.

“Like Gemini, we stock the assurance that a solution tin beryllium recovered to the restitution of each involved,” Bitvavo noted.

Related: It'll beryllium OK: DCG situation apt won’t ‘include a batch of selling’ — Novogratz

DCG and Genesis are among large crypto manufacture companies affected by the monolithic contagion pursuing the collapse of FTX crypto exchange successful November. The concern became much gloomy for DCG aft the United States’ Department of Justice reportedly launched an investigation against the steadfast successful practice with the Securities and Exchange Commission.

On Jan. 10, DCG’s Silbert wrote a nationalist missive to shareholders defending his decisions and providing details of respective loans from Genesis and relationships with firms similar Three Arrows Capital.