Dutch Crypto Exchange Refuses DCG’s Offer to Pay 70% of its Debt

Dutch cryp­to exchange Bit­va­vo claimed to have received an offer from Dig­i­tal Cur­ren­cy Group (DCG) on Jan­u­ary 9th to repay 70% of its debt with­in an accept­able period.

How­ev­er, the com­pa­ny refused the offer cit­ing that the cryp­to con­glom­er­ate has suf­fi­cient funds avail­able for full repayment.

• The devel­op­ment comes days after the trad­ing plat­form revealed it is active­ly engaged in con­ver­sa­tions with DCG to recov­er the result­ing debt along with oth­er cred­i­tors and advisors.
• The offi­cial state­ment read,

“The resid­ual amount is still under dis­cus­sion with DCG as they are only will­ing to repay part of it with­in a peri­od accept­able to Bit­va­vo. As cred­i­tors, the lat­ter is not accept­able because DCG has suf­fi­cient funds avail­able for full repayment.”

• Dig­i­tal Cur­ren­cy Group is cur­rent­ly under inves­ti­ga­tion by the US Depart­ment of Justice’s East­ern Dis­trict of New York as well as the Secu­ri­ties and Exchange Com­mis­sion (SEC). The focus is on the inter­nal trans­fers between the com­pa­ny and its trou­bled sub­sidiary – cryp­to lend­ing firm – Gen­e­sis Glob­al Capital.
• The ongo­ing finan­cial dis­tress was spurred by Gen­e­sis becom­ing one of the com­pa­nies to be affect­ed by the FTX contagion.
• It halt­ed with­drawals on Novem­ber 16th, cit­ing liq­uid­i­ty issues, and has been involved with invest­ment bank Moelis & Com­pa­ny for restruc­tur­ing purposes.
• It was ear­li­er report­ed that Gen­e­sis owes $900 mil­lion to the cryp­to exchange Gem­i­ni. The two plat­forms joint­ly oper­at­ed togeth­er a prod­uct called Gem­i­ni Earn, which enabled users to earn 8% inter­est on their loans.
• Gem­i­ni also accused DCG of fail­ing to repay Gen­e­sis, which, in turn, result­ed in the fail­ure of pay­ments to its clients.
• Since the unrav­el­ing, Bar­ry Sil­bert, the head of DCG, has been under tremen­dous back­lash. Cameron Win­klevoss, the Gem­i­ni co-founder, claimed that Sil­bert has been unwill­ing to find a solu­tion and even request­ed that the Board remove him as the CEO.