Bitvavo rejects DCG’s 70% repayment proposal

Crypto exchange Bitvavo rejected Digital Currency Group’s (DCG) proposal to repay 70% of its debt because the embattled firm has sufficient funds to make full repayment, according to a Jan. 10 statement.

Bitvavo maintained that it was confident that a solution could be found to satisfy all the concerned parties.

According to the Netherlands-based company, the debt repayment would not be affected by the reported investigations into DCG nor the possible bankruptcy of crypto lender Genesis. However, the process could impact the repayment timelines.

Bitvavo did not respond to CryptoSlate’s request for comment as of press time.

Bitvavo has over $300 million (€280 million) locked with DCG. The exchange said it uses DCG’s services to offer off-chain staking services to its clients.

Meanwhile, Bitvavo clients are not impacted by the fallout. According to the exchange, its clients can withdraw their digital assets anytime because it has assumed the risk on their behalf.

DCG is currently facing heightened scrutiny because of its financial situation. Gemini co-founder Cameron Winklevoss has called for the removal of its CEO Barry Silbert.

Journalist at CryptoSlate

Oluwapelumi is a believer in the transformative power Bitcoin and the blockchain industry holds.