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

Published on

January 11, 2023
Read Time:2 Minute, 6 Second

Cryptocurrency change Bitvavo, a serious creditor to struggling crypto firm Digital Forex Group (DCG), has dismissed DCG's proposal to partially repay the debt.

Bitvavo official announced on January 11 that the corporate has acquired a counter-proposal from DCG providing to repay roughly 70% of the excellent quantity on a date acceptable to Bitvavo.

The remaining stability continues to be being negotiated with DCG as it's only keen to repay a part of the debt inside a interval acceptable to Bitvavo, the change mentioned, including:

"As collectors, we don't think about the latter to be acceptable as a result of DCG has adequate funds for full reimbursement."

Bitvavo emphasised that the present state of affairs concerning DCG has no affect on Bitvavo's prospects, platform or companies. "Bitvavo ensures the excellent quantity and has thus assumed the danger from its prospects," the agency famous.

The announcement got here shortly after Bitvavo determined to pre-fund roughly $290 million in property tied to DCG to keep away from reliance on the struggling agency. The Dutch crypto change mentioned it has sufficient assets to proceed serving its prospects with out interruption. The change expected DCG to refund excellent balances despite the fact that the latter is experiencing a large liquidity disaster amid the bear market.

Forged your vote now!

Within the latest assertion, Bitvavo talked about an identical state of affairs confronted by the Winklevoss brothers' crypto change, Gemini. On January 10, Cameron Winklevoss wrote a public letter to the DCG board, accusing CEO Barry Silbert of fraud and calling for Silbert's alternative as CEO. With DCG and its crypto lending subsidiary, Genesis Capital, owing Gemini $900 million, the Gemini founders are assured that there's nonetheless a chance for a constructive decision to the satisfaction of all events concerned.

"Like Gemini, we share the boldness {that a} resolution could be discovered to the satisfaction of all events concerned," mentioned Bitvavo.

Associated: It's going to be okay: DCG disaster probably will not 'contain a lot promoting' - Novogratz

DCG and Genesis are among the many main crypto trade corporations hit by the huge contagion that adopted the November 2022 crypto change FTX collapse. The state of affairs turned extra precarious for DCG after the US Division of Justice reportedly cooperated with opening an investigation into the corporate with the Securities and Alternate Fee.

On January tenth DCGs Silbert wrote a public letter to shareholders defending his selections and detailing a number of of Genesis' loans and relationships with corporations akin to Three Arrows Capital.

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Azeez Mustafa
Azeez began his FinTech career path in 2008 after growing interest and intrigue about market wizards and how they managed to become victorious on the battlefield of the financial world. After a decade of learning, reading and training the ins and outs of the industry, he’s now a sought after trading professional, technical/currency analyst and funds manager – as well as an author.
Last Updated : January 11, 2023
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