Bitvavo, a Dutch Bitcoin and altcoin exchange, made a statement. He said Friday he has $296.30 million locked in a US-based company, Digital Currency Group (DCG). As it is known, DCG is currently experiencing liquidity problems. Therefore, difficult times may be waiting for the stock market. Here are the details…
$290 million locked in US-based Bitcoin company
Bitvavo, a Netherlands-based cryptocurrency exchange, said Friday it has $296.30 million locked in a US-based company, Digital Currency Group (DCG). “DCG is currently experiencing liquidity issues… As a result, DCG has suspended refunds until this liquidity issue is resolved,” the Dutch firm wrote on its blog. cryptocoin.com As we reported, DCG has several subsidiaries, including major cryptocurrency lender Genesis Global Capital, which froze withdrawals in November following the collapse of FTX.
Bitvavo said it expects to be repaid over time and has sufficient funds to “prepay any locked assets in DCG.” He said his clients were not disclosed and could withdraw all their funds at any time. Bitvavo said it gave the money to DCG to offer its customers a product where they can earn interest on their cryptocurrency token deposits. Bitvavo is registered with the Dutch central bank (DNB) as a crypto asset services provider to prevent money laundering on its platform. However, it is not subject to prudent supervision by the DNB or the Dutch Financial Markets Authority (AFM).
DCG events: What happened?
Recently, Digital Currency Group (DCG) released a letter to investors clarifying its financial position and also showing the intercompany lending network between its subsidiary Genesis Global Capital. The crypto company has revealed that it currently has around $2 billion in debt, mostly in-house loans. The loans consist of $575 million payable in 2023 and $1.1 billion in promissory notes payable to Genesis in 2032.
The company also acquired a $350 million loan facility from a group led by Eldridge. According to experts, DCG used Grayscale Bitcoin Trust (GBTC) assets as collateral to obtain the first loan from Genesis. The company purchased $778 million of GBTC shares between March 2021 and June 2022, hoping its net asset value would close. It received funding from Genesis Lending for these purchases. However, with the explosion of Three Arrows Capital (3AC) in June 2022, DCG was forced to buy its GBTC. Unfortunately, 3AC also bought GBTC shares with Genesis Lending, which financed the deal.
Contact us to be instantly informed about the last minute developments. twitter‘in, Facebookin and InstagramFollow and Telegram and YouTube join our channel!
Risk Disclosure: The articles and articles on Kriptokoin.com do not constitute investment advice. Bitcoin and cryptocurrencies are high-risk assets, and you should do your due diligence and do your own research before investing in these currencies. You can lose some or all of your money by investing in Bitcoin and cryptocurrencies. Remember that your transfers and transactions are at your own risk and any losses that may occur are your responsibility. Cryptokoin.com does not recommend buying or selling any cryptocurrencies or digital assets, nor is Kriptokoin.com an investment advisor. For this reason, Kriptokoin.com and the authors of the articles on the site cannot be held responsible for your investment decisions. Readers should do their own research before taking any action regarding the company, assets or services in this article.
Disclaimer: Advertisements on Kriptokoin.com are carried out through third-party advertising channels. In addition, Kriptokoin.com also includes sponsored articles and press releases on its site. For this reason, advertising links directed from Kriptokoin.com are on the site completely independent of Kriptokoin.com’s approval, and visits and pop-ups directed by advertising links are the responsibility of the user. The advertisements on Kriptokoin.com and the pages directed by the links in the sponsored articles do not bind Kriptokoin.com in any way.
Warning: Citing the news content of Kriptokoin.com and quoting by giving a link is subject to the permission of Kriptokoin.com. No content on the site can be copied, reproduced or published on any platform without permission. Legal action will be taken against those who use the code, design, text, graphics and all other content of Kriptokoin.com in violation of intellectual property law and relevant legislation.