a Dutch cryptocurrency exchange, has claimed that Digital Currency Group (DCG), a major cryptocurrency investment firm, is experiencing liquidity problems. Bitvavo stated that it has 280 million euros ($297 million) in assets that are currently stuck with DCG. This represents 17.5% of the total deposits and assets that Bitvavo manages.
Bitvavo assured its customers that the situation will not have any impact on the Bitvavo platform. However, the exchange also stated that DCG has suspended repayments until the liquidity issue is resolved.
DCG has not yet responded to Bitvavo’s claims.
A spokesperson for Digital Currency Group (DCG) told Reuters that the funds in question are held by its “independent subsidiary” Genesis, not DCG. Decrypt has reached out to DCG for further comment.
In other words, DCG is claiming that the funds are not actually its own, but rather belong to a separate company that it owns. This would mean that Bitvavo’s claims about DCG’s liquidity problems are not entirely accurate.
It is still unclear what the exact situation is, and DCG has not yet responded to Decrypt’s request for comment. However, this development does shed some light on the matter and suggests that Bitvavo may have overstated the severity of DCG’s problems.