- Crypto exchange Bitvavo seeks to recover €280m ($300m) from Digital Currency Group (DCG).
- Bitvavo rejected the proposal by DCG to pay 70% of its debt.
- An agreement between DCG, Genesis, and Gemini has been reached. As part of this agreement, Genesis plans to sell its properties to creditors.
Digital Currency Group Owes Bitvavo Money
Crypto exchange Bitvavo expects Digital Currency Group (DCG) to fulfill at least 80% of its obligations to the exchange. The exchange seeks to recover €280m ($300m) from DCG which is about 80-100% of the total amount. They plan to repay it using cash, digital assets, and convertible preferred equity notes in DCG. Additionally, Bitvavo rejected the proposal by DCG to pay 70% of its debt. They argued that DCG needs more funds to pay all the funds it owes Bitvavo.
Agreement Reached Between Three Companies
An agreement between DCG, Genesis, and Gemini has been reached following Bitvavos‘ statement. According to the agreement, Genesis plans to sell the company or give its properties to creditors in order cover its debts. On the other hand, Gemini will have contribute $100m add liquidity for users of their platform.
Raising Funds Through Grayscale Shares
DCG has already sold Grayscale shares at 8% per share in order raise funds necessary for payment of debt owed by them Bitvavo. So far they have raised $22 million but they still need more money in order meet their obligations set out by Bitvavo and thus they are yet trying raise more money through sale Grayscale shares so as be able fulfill their obligations as stipulated by court ruling and reach a settlement with them creditor companies involved dispute..
Expectations From A SettlementBitvavo expects an agreement between both parties will be sealed in a few weeks as other details are being worked out .The exchange expects that at least 80 percent of what is owed should be fulfilled by Digital Currency Group (DCG). This is because despite describing itself as having „insufficient funds“ ,the company believes that it can offset this amount without much difficulty given current market conditions .
< h2 > Conclusion h 2 > In conclusion , Digital Currency Group (DCGs) owe crypto exchange BitsaVo around €280m ($ 300 m ) . The two parties are currently working on reaching an agreement which will involve selling off Grayscale shares among other things .Also , agreements have been made between other companies such as Genesis Global Capital LLC (Genesis) and Gemini who also have an interest in settling these debts . It is expected that an agreement will be reached shortly so that all parties involved can move forward with their operations smoothly .