Bitvavo, an
Amsterdam-based cryptocurrency exchange , has said it expects to get back
between 80% to 100% of the €280 million it is owed by Digital Currency Group
(DCG). However, the exchange in a statement released on Tuesday noted that the
expectation is based on an “in-principle agreement” whose details it believes
will be finalized in the coming weeks.
In addition, Bitvavo
noted that it expects the fund for its clients’ assets to be paid in cash,
digital assets, cash and convertible preferred equity notes in DCG. The Dutch
crypto exchange’s fund had been held in Genesis.
The announcement
comes a day after bankrupt crypto lender Genesis, which is owned by DCG,
reached in-principle agreement with its creditors on a restructuring plan that
would either culminate in its sale or transfer to its equity editors.
Genesis on January
20th filed for bankruptcy protection in New York. The
action was triggered by its exposure to two major crypto firms that collapsed
last year, including FTX’s sudden crumble in November. The crypto lender
had made efforts to raise capital but failed.
As a result, Genesis
is estimated to owe more than 100,000 creditors including the New York-based
crypto exchange, Gemini. The DCG subsidiary owes about $900 million to over
340,000 Gemini Earn customers.
Meanwhile, Finance
Magnates reported that DCG has started selling off the holdings of…
