Update on DCG and Bitvavo’s EUR 280 million

The year 2023 is also still difficult for the crypto world. The misery that all started with the implosion of Terra and the fall of crypto exchange FTX is still rumbling. These two events have set off a massive chain reaction that has left multiple major crypto companies in trouble. One of those companies is the Digital Currency Group, from which the Dutch crypto exchange Bitvavo receives another 280 million euros. Last night a WSJ article even suggested that DCG’s subsidiary Genesis is considering filing for bankruptcy.

In this article we look back at what exactly happened and look at the latest update that Bitvavo posted today.

What happened?

Bitvavo used the Digital Currency Group to provide staking services. This means that Bitvavo forwarded the funds of its customers who wanted to stake their tokens directly to the Digital Currency Group, who then did risky things with them so that customers could get a return on their tokens.

Bitvavo sent about 280 million euros in customer credits to DCG to strike. But now that the company has run into financial problems, it remains to be seen whether this will return to Bitvavo in its entirety. Mind you, the stock market says that there is nothing wrong with Bitvavo’s customers. On December 15, Bitvavo announced that it would take over the entire debt and indemnify its customers.

Still, of course, it’s not an ideal situation, which is why Newsbit is constantly sharing the latest updates on this case.

A new update

Today, January 6, Bitvavo has published a new update on the DCG situation. Bitvavo writes that all rumors and clashes between Gemini and DCG belong in the negotiation process. Bitvavo also writes that they place the message of a possible bankruptcy of Genesis in the context of a negotiation strategy. Furthermore, Bitvavo indicates that they expect the uncertainty surrounding DCG to continue for a while.

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According to Bitvavo, even if Genesis filed for bankruptcy, it would not change the prospect of getting the outstanding amount back. It might just slow down the process a bit.

Finally, the Dutch crypto exchange emphasizes once again that the money of all customers is safe and they are therefore not at risk. The stock market writes”

“As indicated earlier, the current situation with regard to 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.”

Should there be any new updates on the situation surrounding the Digital Currency Group and Bitvavo’s EUR 280 million, Newsbit will inform you as soon as possible in the future.

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