© Reuters. FILE PHOTO: Representations of cryptocurrencies Bitcoin, Ethereum and DogeCoin are positioned on PC motherboard on this illustration taken, June 29, 2021. REUTERS/Dado Ruvic/Illustration/File Photograph
AMSTERDAM (Reuters) – Bitvavo, a Dutch cryptocurrency alternate, mentioned on Friday it has 280 million euros ($296.30 million) locked at Digital Forex Group (DCG), a U.S.-based firm.
“DCG is at present experiencing liquidity issues … Because of this, DCG has suspended repayments till this liquidity concern has been resolved,” the Dutch agency mentioned on its weblog.
DCG operates a number of subsidiaries, together with main cryptocurrency lender Genesis World Capital, which froze withdrawals in November following the collapse of FTX.
Bitvavo mentioned it expects to be reimbursed over time and that it has sufficient funds to “prefund any locked property at DCG”. It mentioned its clients are usually not uncovered and might withdraw all their funds at any time.
It mentioned it had given the cash to DCG to supply Bitvavo clients a product the place they may earn curiosity on their cryptocurrency token deposits.
Bitvavo is registered with the Dutch central financial institution (DNB) as a digital property companies supplier to stop cash laundering on its platform, however it’s not topic to prudential supervision by both the DNB or the Netherlands’ Monetary Markets Authority (AFM).
($1 = 0.9450 euros)
