Dutch cryptocurrency exchange Bitvavo said it can’t access 280 million euros ($297 million) held at Digital Currency Group, according to a company blog post.
Bitvavo also said the U.S.-based Digital Currency Group, or DCG, is “experiencing liquidity problems” and has therefore “suspended repayments” until the issue is resolved. The Dutch firm had been using DCG to “offer off-chain staking services to its clients,” but the company said the frozen funds would not impact its platform.
The announcement counts as one more ripple effect caused by the catastrophic collapse of FTX, a cryptocurrency exchange now undergoing bankruptcy proceedings and under investigation by U.S. authorities. DCG controls the beleaguered cryptocurrency lender Genesis Global Capital, which last month suspended redemptions and new loan originations shortly after FTX’s demise upended the crypto world.
Of the 1.6 billion euros Bitvavo possesses in “deposits and digital assets,” it said that 280 million euros had been placed with DCG. Regardless, Bitvavo said its services would not be interrupted and customers could continue to make withdrawals.
DCG didn’t immediately respond to an emailed request for comment.
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Source: https://www.theblock.co/post/195902/bitvavo-unable-to-access-280-million-euros-held-at-dcg?utm_source=rss&utm_medium=rss