Bitvavo rejects DCG's partial loan repayment offer
Quick Take
- Bitvavo says it rejected Digital Currency Group’s offer to repay at least 70% of the outstanding loan.
- DCG’s beleaguered crypto lending subsidiary, Genesis Global, holds $297 million of Bitvavo’s funds.
Bitvavo has rejected an offer by Digital Currency Group to pay part of the €280 million ($297 million) owed by its beleaguered crypto lending subsidiary Genesis, the Dutch crypto exchange said on Tuesday.
Bitvavo's statement revealed that DCG offered to pay at least 70% of the loan. The Dutch exchange, however, refused the offer — citing the firm’s ability to repay the total amount owed within the agreed-upon payment timetable.
The exchange also stated that a corporate restructuring within DCG could aid a favorable out-of-court settlement for lenders — echoing crypto exchange Gemini’s appeals for similar changes. Gemini president Cameron Winklevoss called for DCG CEO Barry Silbert to step down yesterday, accusing the latter of misleading the public about the company’s financial health. Gemini is another of Genesis’s creditors, with $900 million currently stuck with the troubled lender.
Bitvavo’s statement also assured customers that their funds were safe. The exchange maintained that Genesis going into bankruptcy would not affect the loan repayment process.
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