Crypto exchange Bitvavo says 280 million euros ‘locked’ at DCG

Crypto exchange Bitvavo says 280 million euros ‘locked’ at DCG
Crypto exchange Bitvavo says 280 million euros 'locked' at DCG
© Reuters. FILE PHOTO: Representations of cryptocurrencies Bitcoin, Ethereum and DogeCoin are placed on PC motherboard in this illustration taken, June 29, 2021. REUTERS/Dado Ruvic/Illustration/File Photo

AMSTERDAM (Reuters) – Bitvavo, a Dutch cryptocurrency exchange, said on Friday it has 280 million euros ($296.30 million) locked at Digital Currency Group (DCG), a U.S.-based company.

“DCG is currently experiencing liquidity problems … As a result, DCG has suspended repayments until this liquidity issue has been resolved,” the Dutch firm said on its blog.

DCG operates several subsidiaries, including major cryptocurrency lender Genesis Global Capital, which froze withdrawals in November following the collapse of FTX.

Bitvavo said it expects to be reimbursed over time and that it has enough funds to “prefund any locked assets at DCG”. It said its customers are not exposed and can withdraw all their funds at any time.

It said it had given the money to DCG to offer Bitvavo customers a product where they could earn interest on their cryptocurrency token deposits.

Bitvavo is registered with the Dutch central bank (DNB) as a digital assets services provider to prevent money laundering on its platform, but it is not subject to prudential supervision by either the DNB or the Netherlands’ Financial Markets Authority (AFM).

($1 = 0.9450 euros)

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