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Barry Silbert’s crypto conglomerate Digital Currency Group (DCG) is “actively engaged” in negotiations with creditors, according to a little-known crypto exchange.
writing in blog Post On Tuesday, Dutch crypto exchange Bitvavo said DCG has offered to return at least 70% of 280m euros ($303m) of outstanding debt DCG has to the exchange. “The residual amount is still under discussion with DCG as they are only willing to repay part of it within a period acceptable to BitWove,” the blog post said.
It added that it had rejected the proposal as it believed that the DCG “has sufficient funds available for full repayment”.
“Solutions Can Be Found”
In the blog post, Bitvavo also referenced the open letter to the DCG, which was published by the cryptocurrency exchange Gemini, which is also a DCG creditor. The letter has, among other things, summoned the DCG board Dismiss Barry Silbert as CEO of the company,
“Like Gemini, we share the belief that a solution can be found to the satisfaction of all concerned,” BitWoW wrote in reference to the letter published on Twitter by Gemini co-founder Cameron Winklevoss.
Repayment possible even in case of bankruptcy
In its update, BitVo said it believes the amount owed by DCG can still be paid even if Genesis Global, a subsidiary of DCG, files for Chapter 11 bankruptcy.
has gone bankrupt suggested given as a possibility by major media outlets such as the Wall Street Journal experienced solvency issues By Crypto Lender. In November, Genesis had some $2.8 billion in outstanding loans on its balance sheet.
Gemini relied on Genesis for its “Earn” program, and withdrawal from the program became impossible thereafter. redemption off genesis to its customers in November last year.
No impact on Bitvo customers
The Dutch crypto exchange further assured its customers that the process around DCG and Origin will have no impact on them.
,[…] The current situation with respect to DCG does not affect Bitvavo’s customers, its platform and its services. BitWo guarantees the outstanding amount and thus assumes the risk on behalf of its customers,” it wrote.
Digital Currency Group is a leading crypto conglomerate with investments in dozens of crypto-related companies. Among its holdings are Chainalysis, BitFlyer, Bitpay, Blockstream, Ledger, Ripple, Coinbase, eToro and Kraken to name a few.
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