Few Dutch cryptocurrency investors have missed the fact that a lot of hype has been created around cryptocurrency exchanges Petavavo. The company would have run into trouble when Bitvavo’s partner, Digital Currency Group (DCG), could no longer pay Bitvavo a large sum of money. There is a lot that is not clear, and a lot of misinformation is making the rounds. That is why in this article we briefly outline what exactly is going on, and what the consequences can be.
It all started with a cryptocurrency exchange FTX He died suddenly and catastrophically. FTX was a giant in the crypto world and that is why many other parties also had interests in FTX. One such party was the cryptocurrency lending platform Genesis. It soon became apparent that Genesis itself was in deep financial trouble due to the demise of FTX.
Genesis’ parent company is DCG. So if Genesis ends up in extreme weather, it stands to reason that this would also hurt DCG. Yesterday it was announced that Genesis may have Consider bankruptcy. Genesis’ parent company, DCG, is again Bitvavo who had a partnership with it.
DCG would be it Chain strike Take Bitvavo’s service. Any funds deposited on Bitvavo by customers to stop It is located in DCG. In total, this is about 280 million euros.
DCG does not issue refunds
Bitvavo now obviously wants this money back and under normal circumstances this shouldn’t be a problem either. However, we know that Genesis and DCG are in trouble, so this problem is no longer so easy. It appears that DCG is unable to refund Bitvavo at this time.
Bitvavo has repeatedly stated that it expects to recover the €280 million sooner or later. In the event that this happens, we can say that the crisis for Bitvavo and all of its Dutch clients is over. Bitvavo continues to talk to DCG and other parties to find a solution as quickly as possible. How realistic this scenario is cannot be said on the basis of press reports from both sides.
If Bitvavo does not make a refund, it will be a huge blow to the company. However, Bitvavo has mentioned it several times Will and can guarantee about the amount. Oil was thrown on the fire when Financieel Dagblad published an article stating that Bitvavo does not have $280 million on hand in case DCG fails. Bitvavo has rated this piece by Financieel Dagblad as “Incomplete and neutral“
Bitvavo reiterates over and over that customers’ funds are not at risk and that they will easily survive any scenario.
Whatever happens to Bitvavo’s funds, at least for now it doesn’t look like Bitvavo is on the verge of going under, which is being called out here and there. However, of course, the situation is undesirable for customers. Uncertainty is the last thing a cryptocurrency investor needs and hopes for a quick fix.
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