Bitvavo crypto exchange announced blocked funds
2022.12.17 01:45
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Bitvavo crypto exchange announced blocked funds
Budrigannews.com – Bitvavo, a Dutch cryptocurrency exchange, stated on Friday that Digital Currency Group (DCG), a U.S. company, holds 280 million euros (about $296.30 million).
The Dutch company stated on its blog, “DCG is currently experiencing liquidity problems… As a result, DCG has suspended repayments until this liquidity issue has been resolved.”
Genesis Global Capital, a major cryptocurrency lender, is one of DCG’s subsidiaries. In November, following the collapse of FTX, Genesis Global Capital froze withdrawals.
Bitvavo stated that it anticipates receiving reimbursement over time and possesses sufficient funds to “prefund any locked assets at DCG.” It stated that its clients are protected and can at any time withdraw all of their funds.
It stated that it had provided the funds to DCG in order to provide Bitvavo customers with a product through which they could earn interest on deposits of cryptocurrency tokens.
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To prevent money laundering on its platform, Bitvavo is registered as a digital assets services provider with the Dutch central bank (DNB), but it is not subject to prudential supervision by the DNB or the Netherlands’ Financial Markets Authority (AFM).
