The Block: Bitvavo unable to access 280 million euros held at Genesis Global Capital

Dutch cryptocurrency exchange Bitvavo said it can’t access 280 million euros ($297 million) held with Digital Currency Group, but a spokesperson for DCG said the issues are with its subsidiary Genesis Global Capital.

Bitvavo, in a company blog post, said DCG, is “experiencing liquidity problems” and has therefore “suspended repayments” until the issue is resolved. The Dutch said it had been using DCG to “offer off-chain staking services to its clients,” but the company said the frozen funds would not impact its platform.

A DCG spokesperson said Bitvavo's relationship was with Genesis Capital, not DCG, and it had reached out to the Dutch firm asking them to correct their post.

DCG controls the beleaguered cryptocurrency lender Genesis Global Capital, which last month suspended redemptions and new loan originations shortly after the collapse of FTX upended the crypto world.

Of the 1.6 billion euros Bitvavo possesses in “deposits and digital assets,” it said that 280 million euros had been placed with DCG. Regardless, Bitvavo said its services would not be interrupted and customers could continue to make withdrawals.

(Updates with response from DCG, which pointed out that Bitvavo's relationship is with Genesis Global Capital.)

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