July 12, 2024

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Bitvavo is getting another €280 million from the cryptocurrency lending platform, but don’t panic

Bitvavo is getting another €280 million from the cryptocurrency lending platform, but don’t panic

Crypto lending platform DCG has undergone a meltdown FTX In trouble. Many trading platforms use DCG for the so-called out of chain He hits To provide services to clients. Bitvavo is one of the exchanges that has stored cryptocurrency on this platform. Could this cause problems for the Dutch cryptocurrency exchange? The short answer is “no,” Bitvavo said in an update. You can read the long answer here.

Bitvavo has money in the milled DCG

FTX’s downfall is not an isolated occurrence. Given the size of FTX, tentacles of FTX have been almost everywhere in the crypto world. DCG fell victim to this as it had close to $200 million in an FTX account. This was one of the reasons why DCG is now in severe weather.

earlier it was Crypto news Read that this also caused problems for other parties. For example, cryptocurrency exchange Gemini claims to receive another $900 million from DCG. This money he wants Review as soon as possible.

And closer to home, it has recently become apparent that Bitvavo is in the same boat. in Modernization The Dutch cryptocurrency exchange reported today that Bitvavo:

Services used from Digital Currency Group, Inc. and its affiliates (DCG) [waaronder DCG, red.] To provide off-chain staking services. DCG’s liquidity issue has arisen due to the recent turmoil in the cryptocurrency market. As a result, DCG has suspended payment until this liquidity issue is resolved. “

Bitvavo has €280 million of the €1.6 billion in credit balances with DCG

Petavavo He goes on to report that he manages $1.6 billion in funds and digital assets. €280 million of this is currently in DCG. Together with DCG’s other business clients, the Dutch cryptocurrency exchange is now trying to recover these funds. This is said to be in collaboration with cryptocurrency exchange Gemini.

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Bitvavo confirms that it expects DCG to pay most of the outstanding balances. It adds to the update that should reassure customers that:

“Bitvavo has been profitable since its inception and is in a sound financial position. If necessary, Bitvavo will step in to protect our customers. Bitvavo’s DCG debt is not an obstacle to this.”

In short, despite the situation, customers can continue to withdraw their credits. It is said to hold all of its clients’ assets on a 1:1 basis and would never lend to them without express permission.

Want to read more about Bitvavo? Read here Bitvavo review On Crypto Insiders.