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AMSTERDAM, Dec 16 (Reuters) – Bitvavo, a Dutch cryptocurrency exchange, said on Friday it had 280 million euros ($296.30 million) locked up in the U.S.-based Digital Currency Group (DCG). United.
“DCG is currently experiencing liquidity problems (…) As a result, DCG has suspended reimbursements until this liquidity problem is resolved”, indicated the Dutch firm on its blog.
DCG operates several subsidiaries, including major cryptocurrency lender Genesis Global Capital, which froze withdrawals in November after FTX collapsed.
Bitvavo said it expects to be repaid over time and has sufficient funds to “pre-fund all assets locked at DCG”. He said his clients are not exposed and can withdraw all their funds at any time.
He said he gave the money to DCG to offer Bitvavo customers a product to earn interest on their cryptocurrency token deposits.
Bitvavo is registered with the Dutch Central Bank (DNB) as a digital asset service provider to prevent money laundering on its platform, but it is not subject to the prudential supervision of the DNB or the Authority for the Financial Markets (AFM) of the Netherlands.
($1 = 0.9450 euros)
Reporting by Toby Sterling; Editing by Josie Kao
Our standards: The Thomson Reuters Trust Principles.
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