Bitvavo expected to receive at least 80% of DCG’s debt Bitvavo expected to receive at least 80% of DCG’s debt
The DCG owes Bitvavo 280 million Euros — which equates to over $300 million. The exchange expects to publish the settlement soon.
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Updated: Feb. 7, 2023 at 9:58 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Crypto exchange Bitvavo is expecting Digital Currency Group (DCG) to repay at least 80% of its debt to the exchange, according to a Reuters report.
DCG owes €280 million to Bitvavo — which equates to over $300 million — as stated in the Reuters article. Bitvavo said:
“The result submitted to the court amounts to an expected recovery rate of between 80-100% which will be repaid in cash, digital assets, cash and convertible preferred equity notes in DCG.”
The exchange expects the agreement to be finalized in the coming weeks as soon as the details are worked out.
On Jan. 10, the exchange rejected DCG’s proposal to pay 70% of its debt to Bitvavo. Bitvavo argued that the DCG had sufficient funds to make full payment.
DCG settles with Genesis and Gemini
Bitvavo’s above statement followed an in-principle agreement between DCG, its lender Genesis, and crypto exchange Gemini.
Genesis will either sell the company or turn over its equity to creditors to cover its debt, according to the agreement.
Meanwhile, Gemini will contribute $100 million to help provide liquidity to Gemini Earn users.
DCG sold Grayscale shares at $8 per share on Feb. 7, raising around $22 million.
Background
The sides have been in a quarrel since November 2022. Genesis took a heavy impact from the Terra-Luna crash in May 2022 and ended up halting withdrawals on Nov. 16. Two months later; the lender laid off 30% of its staff, which raised concerns regarding the company’s insolvency.
Genesis was one of the partners of Gemini’s Earn Program, which started having liquidity troubles in late December after Genesis halted withdrawals. Gemini founders Cameron and Tyler Winklevoss claimed that DCG founder Barry Silbert owes Genesis $1.675 billion, and a part of his debt belonged to Gemini Earn users.
Mentioned in this article
Posted In: Bankruptcy, Exchanges
Author 
Zeynep Geylan
Zeynep is an academic who turned to crypto in 2018. Originating in social sciences, she is especially interested in the social impact of blockchain and cryptocurrencies and strongly believes in their transmuting power.
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In this article
Digital Currency Group
Digital Currency Group’s mission is to accelerate the development of a better financial system.
Bitvavo
Bitvavo is a cryptocurrency exchange that was founded in 2018 and is headquartered in Amsterdam, The Netherlands.
Gemini
Gemini is a regulated digital asset exchange and custodian that allows customers to buy, sell, store, and stake digital assets in a regulated, secure, and compliant manner.
Genesis
Genesis is an institutional digital asset markets and a full-service digital currency prime brokerage providing a single point of access for select qualified individuals and global institutional investors.
Barry Silbert, recognized as a foundational figure in the cryptocurrency landscape, serves as the CEO and founder of Digital Currency Group (DCG).