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

Cryptocurrency exchange Bitvavo, a significant creditor of the troubled crypto firm Digital Currency 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 beneath negotiation with DCG as it is just prepared to repay half of the debt inside a time period acceptable for Bitvavo, the exchange mentioned, including:

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

Bitvavo emphasised that the present state of affairs relating to DCG has no affect on Bitvavo’s prospects, its platform and its companies. “Bitvavo ensures the excellent quantity and has thus taken over the danger from its prospects,” the agency famous.

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

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In the newest assertion, Bitvavo talked about an identical state of affairs confronted 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 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 constructive answer to the satisfaction of all events concerned.

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

Related: It’ll be OK: DCG disaster seemingly gained’t ‘embody so much of promoting’ — Novogratz

DCG and Genesis are amongst main crypto business corporations affected by the huge contagion following the collapse of FTX crypto exchange in November. The state of affairs turned extra gloomy for DCG after the United States’ Department of Justice reportedly launched an investigation in opposition to the agency in cooperation with the Securities and Exchange Commission.

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