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

Cryptocurrency exchange Bitvavo, a major creditor of the troubled crypto company Digital Currency Group (DCG), has dismissed DCG’s proposal of partial debt repayment.

Bitvavo officially announced on Jan. 11 that the firm received a counter proposal from DCG offering to repay about 70% of the outstanding amount in a term acceptable to Bitvavo.

The remaining balance amount is still under negotiation with DCG as it is only ready to repay part of the debt within a term acceptable for Bitvavo, the exchange said, adding:

“As creditors, we do not find the latter acceptable because DCG has sufficient resources available for full repayment.”

Bitvavo emphasized that the current situation regarding DCG has no impact on Bitvavo’s customers, its platform and its services. “Bitvavo guarantees the outstanding amount and has thus taken over the risk from its customers,” the firm noted.

The announcement came soon after Bitvavo decided to prefund about $290 million in assets locked on DCG in order to avoid reliance on the troubled firm. The Dutch crypto exchange said that it had enough resources to continue serving its customers with no disruption. The exchange expects DCG to refund outstanding balances despite the latter experiencing a massive liquidity crisis amid the bear market.

Cast your vote now!

In the latest statement, Bitvavo mentioned a similar situation faced by Winklevoss brothers’ crypto exchange Gemini. On Jan. 10, Cameron Winklevoss wrote a public letter to the DCG board, accusing CEO Barry Silbert of fraud and calling for replacing the exec as CEO. With DCG and its crypto lending subsidiary Genesis owing Gemini $900 million, Gemini founders are confident that there’s still a possibility of a positive solution to the satisfaction of all parties involved.

“Like Gemini, we share the confidence that a solution can be found to the satisfaction of all involved,” Bitvavo noted.

Related: It’ll be OK: DCG crisis likely won’t ‘include a lot of selling’ – Novogratz

DCG and Genesis are among major crypto industry companies affected by the massive contagion following the collapse of FTX crypto exchange in November. The situation became more gloomy for DCG after the United States’ Department of Justice reportedly launched an investigation against the firm in cooperation with the Securities and Exchange Commission.

On Jan. 10, DCG’s Silbert wrote a public letter to shareholders defending his decisions and providing details of several loans from Genesis and relationships with firms like Three Arrows Capital.

All Dutch and English crypto news!

FTX estate to unload $7.6B locked Solana balance at 68% discount

Buyers are required to agree to a vesting period of four years for their FTX SOL purchase. News Own this piece of crypto history Collect this article as...

3 metrics hint that the Ethereum (ETH) price correction is not over

Ethereum price has had a rocky week and data suggests that more downside could be on the way. Altcoin Watch Own this piece of crypto history Collect this...

Bankman-Fried sentenced to 25 years in prison

Sam Bankman-Fried has been sentenced to 25 years in prison.  FTX imploded in November 2022, with customers losing billions of dollars in assets. Sam Bankman-Fried, the founder...

Crypto recap 28 maart: Toch rechtszaak SEC en Coinbase! | ETF’s: opnieuw positieve cijfers

Iedere dag bespreekt Axel in zijn video de laatste ontwikkelingen in de crypto markt. Dit doet hij met de onderbouwing van nieuwsberichten en technische analyses....

Beste exchanges

Koop je crypto bij Bitvavo