December 11, 2023

Bitvavo loses access to €280 million blocked in Genesis Global Capital

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Bitvavo loses access to €280 million blocked in Genesis Global Capital

Dutch cryptocurrency exchange Bitvavo said it was unable to access its funds at Digital Currency Group due to issues with Genesis Global Capital.

Dutch cryptocurrency exchange Bitvavo has filed a claim against Digital Currency Group (DCG) over €280 million blocked in the accounts of its subsidiary Genesis Global Capital.

"Bitvavo Custody BV, part of the Bitvavo group, has leveraged the services of Digital Currency Group and its subsidiaries (DCG) to offer off-chain staking services to its customers.DCG is currently experiencing liquidity issues due to the current turbulence in the cryptocurrency market.As a result, DCG has suspended payments until it isThe liquidity problem has been resolved," the exchange said in a statement.

Bitvavo said it expects reimbursement and that it has enough funds to "advance any locked assets in DCG."The company claims that Bitvavo customers are not at risk and canwithdraw all your funds at any time.

A spokesperson for DCG said that Bitvavo only cooperates with Genesis Capital, not DCG, and asked the Dutch exchange not to mix different companies in the claims.

Recall that DCG operates several companies, including major crypto lender Genesis Global Capital, which froze withdrawals in November following the collapse of FTX.

According to Barron's, the crypto lending service Genesis Global Capital has become the subject of an investigation by US regulators in connection with the suspension of operations and the company's liquidity crisis.