Saturday, April 1, 2023

Bitvavo’s $296.30 Million Locked at DCG: DCG Faces Liquidity Issues

  • DCG owes 280 million euros to Bitvavo due to the former’s liquidity crises.
  • The company assured reimbursement once the issue is resolved.
  • Bitvavo assured its community that the DCG debt would not affect the activities of Bitvavo.

Reportedly, Bitvavo, the Dutch-based crypto firm and a prominent European market leader offering tailor-made services for crypto investors, announced that 280 million euros, an equivalent of $296.30 million, has been locked at the US-based venture capital company, Digital Currency Group (DCG).

After the exposure of the locked assets, Bitvavo came forward with the detailing of the “liquidity issue” that DCG has been confronting:

In a blog, Bitvavo also assured that DCG would turn up with plans to reimburse the “outstanding deposits” in the next weeks as the company has suspended repayments till the liquidity issues are resolved.

In addition, the platform also guaranteed its community with an affirmation that the current situation of DCG would not affect the customers of Bitvavo. Also, the blog mentioned that Bitvavo is in a “financially solid position” so that, the debt of DCG would never become an obstacle to the fulfillment of the Bitvavo community’s needs.

Notably, the blog aims at providing a detailed explanation of the company’s commitment to the community for not exposing them to the DCG liquidity crises:

Bitvavo manages approximately EUR 1.6 billion in deposits and digital assets. Of this amount, EUR 280 million has been allocated to DCG. Bitvavo is able to refund any locked assets at DCG, to ensure that withdrawals of customer assets will be able to be processed at any time, meaning that Bitvavo customers are not exposed to DCG liquidity issues.

Previously, there had been reported liquidity issues regarding DCG when it had been identified that the company owed $575 million to the Genesis crypto lending firm and nearly $900 million to the crypto exchange Gemini.

  • DCG owes 280 million euros to Bitvavo due to the former’s liquidity crises.
  • The company assured reimbursement once the issue is resolved.
  • Bitvavo assured its community that the DCG debt would not affect the activities of Bitvavo.

Reportedly, Bitvavo, the Dutch-based crypto firm and a prominent European market leader offering tailor-made services for crypto investors, announced that 280 million euros, an equivalent of $296.30 million, has been locked at the US-based venture capital company, Digital Currency Group (DCG).

After the exposure of the locked assets, Bitvavo came forward with the detailing of the “liquidity issue” that DCG has been confronting:

In a blog, Bitvavo also assured that DCG would turn up with plans to reimburse the “outstanding deposits” in the next weeks as the company has suspended repayments till the liquidity issues are resolved.

In addition, the platform also guaranteed its community with an affirmation that the current situation of DCG would not affect the customers of Bitvavo. Also, the blog mentioned that Bitvavo is in a “financially solid position” so that, the debt of DCG would never become an obstacle to the fulfillment of the Bitvavo community’s needs.

Notably, the blog aims at providing a detailed explanation of the company’s commitment to the community for not exposing them to the DCG liquidity crises:

Bitvavo manages approximately EUR 1.6 billion in deposits and digital assets. Of this amount, EUR 280 million has been allocated to DCG. Bitvavo is able to refund any locked assets at DCG, to ensure that withdrawals of customer assets will be able to be processed at any time, meaning that Bitvavo customers are not exposed to DCG liquidity issues.

Previously, there had been reported liquidity issues regarding DCG when it had been identified that the company owed $575 million to the Genesis crypto lending firm and nearly $900 million to the crypto exchange Gemini.

 

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