Bitvavo Allocates Nearly $300 Million To DCG

According to a blog post by Bitvavo, the Dutch cryptocurrency exchange firm said it was unable to access 280 million euros owned by Digital Currency Group.

The American Digital Currency Group, or DCG, is experiencing liquidity challenges, according to Bitvavo, and has suspended repayments until the situation is fixed. Although the company said the blocked assets will not have an effect on its platform, the Dutch company has been utilizing DCG to offer off-chain staking services to its clients.

The news is just another repercussion of the disastrous failure of FTX, a cryptocurrency exchange now embroiled in bankruptcy procedures and under investigation by American authorities.

DCG is the owner of the troubled cryptocurrency lender Genesis Global Capital, which last month put a halt to new loan applications and redemptions after the collapse of FTX rocked the industry.

Bitvavo said that 280 million euros ($297 million USD) had been invested with DCG out of the 1.6 billion euros it had in “deposits and digital assets.” However, Bitvavo assured users that their services would not be halted and that withdrawals could still be made.

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