The cryptocurrency trade Bitvavo, which is a major creditor of the financially challenged cryptocurrency startup Digital Currency Group (DCG), has rejected DCG’s proposal of partial debt restoration.
On January 11, 2019, Bitvavo made an official announcement stating that the corporate had acquired a counter proposal from DCG, which provided to refund about 70 % of the full sum owed on phrases that have been agreeable to Bitvavo.
DCG is simply ready to return a portion of the mortgage inside a time-frame that’s acceptable to Bitvavo, thus negotiations over the remaining steadiness quantity are at present ongoing with this get together.
Bitvavo has highlighted that the current situation involving DCG doesn’t have any affect on the corporate’s purchasers, platform, or companies. Bitvavo offers a assure for the remaining steadiness and has thereby assumed the chance that was beforehand borne by its shoppers.
The assertion got here shortly after Bitvavo made the choice to pre-fund round $290 million in property locked on DCG in order that it might not be depending on the struggling firm. The Dutch cryptocurrency trade stated that it has enough capability to proceed offering service to its purchasers with none interruptions.
Despite the truth that DCG is going through a extreme liquidity problem within the midst of the bear market, the trade anticipates that will probably be in a position to refund overdue sums. In their most up-to-date assertion, Bitvavo famous a situation that was similar to the one which the crypto trade Gemini, which is owned by the Winklevoss brothers, was experiencing.
On January 10, Cameron Winklevoss despatched a public letter to the board of administrators of DCG, through which he accused CEO Barry Silbert of fraud and demanded that Silbert get replaced in his place as CEO.
After the failure of the FTX cryptocurrency trade in November 2022, a major contagion unfold throughout the market, inflicting massive firms like as DCG and Genesis to be adversely impacted.
It was introduced that the Department of Justice of the United States had begun an investigation into DCG along side the Securities and Exchange Commission, the scenario grew much more harmful for the corporate.