The largest crypto exchange in the Netherlands, Bitvavo will receive another 280 million euros from the Digital Currency Group (DCG), which has run into problems due to the fall of crypto exchange FTX.
What exactly is going on?
Bitvavo Custody BV, part of the Bitvavo Group, has used services from the Digital Currency Group and its affiliates (DCG) to provide off-chain staking services to its customers. However, due to the current problems in the crypto market, DCG is currently experiencing liquidity problems. As a result, recordings have been temporarily stopped by DCG. Especially in the current market, that is not good news for the largest crypto exchange in the Netherlands, but Bitvavo itself emphasizes that the suspension will not have any negative consequences for its customers.
“No need to panic”
The Digital Currency Group itself indicates that it will repay the outstanding deposits and will present a solution in the coming weeks. Furthermore, Bitvavo itself also states that its own customers have nothing to fear. They write:
“Bitvavo manages approximately EUR 1.6 billion in deposits and digital assets. Of this amount, EUR 280 million has been allocated to DCG. Bitvavo can pre-finance any locked assets with DCG to ensure customer asset withdrawals can be processed at any time. That means that Bitvavo customers are not exposed to DCG liquidity problems.”
Bitvavo therefore assumes that most of the money will be refunded by the Digital Currency Group for now. If possible, Bitvavo will assist itself to protect its customers. Furthermore, the exchange states that customer credits on the Bitvavo platform can be withdrawn at any time.