DCG says it is in talks with creditors

[ad_1]

Barry Silvert. Source: a video screenshot.

Barry Silbert’s crypto conglomerate, Digital Currency Group (DCG), is “actively engaged” in talks with creditors, according to a little-known crypto exchange.

Writing in a blog post on Tuesday, Dutch crypto exchange Bitvavo said DCG has offered to repay at least 70% of the €280 million ($303 million) in outstanding debt DCG owes the exchange. “The residual amount is still under discussion with DCG as they are only willing to refund part of it within a time frame acceptable to Bitvavo,” the blog post states.

He added that he had rejected the proposal as he believed DCG “had sufficient funds for full repayment”.

“A solution can be found”

In the blog post, Bitvavo also referenced the open letter to DCG that was published by crypto exchange Gemini, which is also a creditor of DCG. Among other things, the letter asked the DCG board to fire Barry Silbert as the company’s CEO.

“Like Gemini, we share the confidence that a solution can be found to the satisfaction of all concerned,” Bitvavo wrote in reference to the letter, which was posted on Twitter by Gemini co-founder Cameron Winklevoss. .

Reimbursement possible even in the event of bankruptcy

Bitvavo added in its update that it believes payment of the amount owed by DCG can still be made even if DCG subsidiary Genesis Global files for Chapter 11 bankruptcy.

Bankruptcy has been suggested as a possibility by major outlets like the Wall Street Journal, given the solvency issues faced by the crypto lender. As of November, Genesis had some $2.8 billion in outstanding loans on its balance sheet.

Gemini relied on Genesis for its “Earn” program, and withdrawals from the program became impossible after Genesis closed redemptions for its customers in November last year.

No impact on Bitvavo customers

The Dutch crypto exchange has further assured its clients that the process surrounding DCG and Genesis will have no impact on them.

“[…] the current situation regarding DCG has no impact on Bitvavo’s customers, its platform and its services. Bitvavo guaranteed the unpaid amount and therefore assumed the risk on behalf of its customers,” he wrote.

Digital Currency Group is a major crypto conglomerate with investments in dozens of crypto-related businesses. Among its holdings are well-known companies such as Chainalysis, bitFlyer, BitPay, Blockstream, Ledger, Ripple, Coinbase, eToro, and Kraken, to name a few.

[ad_2]