🎈 Up Big Today: Find today's biggest gainers with our free screenerTry Stock Screener

Crypto exchange Bitvavo says it aims to recoup 280 million euros from DCG

Published 12/16/2022, 05:45 PM
Updated 12/17/2022, 12:41 PM
© Reuters. FILE PHOTO: Representations of cryptocurrencies Bitcoin, Ethereum and DogeCoin are placed on PC motherboard in this illustration taken, June 29, 2021. REUTERS/Dado Ruvic/Illustration/File Photo

AMSTERDAM (Reuters) -Dutch cryptocurrency exchange Bitvavo said on Saturday it is trying to recover 280 million euros ($296.30 million) from U.S.-based Digital Currency Group (DCG) and its subsidiaries.

Bitvavo said it had lent the money to DCG subsidiary Genesis Global Capital in order to offer Bitvavo's own customers a product where they received interest on their cryptocurrency tokens.

Genesis froze withdrawals in November following the collapse of FTX. It said in a letter to clients in early December it was crafting a plan to preserve assets.

FTX filed for bankruptcy on Nov. 11, leaving an estimated 1 million customers and other investors facing total losses in the billions of dollars. The collapse reverberated across the crypto world and sent bitcoin and other digital assets plummeting.

Bitvavo said it expected to be reimbursed over time but it had enough funds to cover the assets for its own customers. It said its customers were not exposed and could withdraw all their funds at any time.

A public relations agent for DCG on Saturday said the accounts in question were held at Genesis, not DCG itself.

"Genesis holds the (U.S.) regulatory licences necessary," it said, adding that Genesis was an "independent subsidiary".

A spokesperson for Bitvavo said it held DCG responsible for the inaccessible funds.

"We are in discussions with multiple entities of the group and given the mingling within the group we hold DCG responsible for the outstanding amount," a Bitvavo spokesperson said.

"For completeness' sake, we refer to the Digital Currency Group and its subsidiaries."

© Reuters. FILE PHOTO: Representations of cryptocurrencies Bitcoin, Ethereum and DogeCoin are placed on PC motherboard in this illustration taken, June 29, 2021. REUTERS/Dado Ruvic/Illustration/File Photo

Bitvavo is registered with the Dutch central bank (DNB)as a digital assets services provider to prevent money laundering on its platform, but is not subject to prudential supervision by either the DNB or the Netherlands' Financial Markets Authority.

($1 = 0.9450 euros)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.