The major Dutch crypto exchange Bitvavo has reached an agreement with the Digital Currency Group (DCG), an American crypto investor whose subsidiary Genesis ran into financial problems after the collapse of crypto company FTX. That made Bitvavo announced Tuesday. The exchange had -with permission- lent 280 million euros in cryptocurrency from customers via Genesis. Bitvavo was in danger of losing that money when Genesis went bankrupt. In recent weeks, negotiations have been going on about a debt restructuring in which Bitvavo was one of the creditors.
According to Bitvavo, more than 80 percent of the money lent eventually comes back. This is done in the form of shares in DCG, cryptocurrency and money. More details about the deal and the implications for Bitvavo, which has approximately one million Dutch customers, will become clear in the coming weeks. Based on what has now been announced, the bankruptcy of Genesis Bitvavo will probably cost tens of millions of euros.
Bitvavo has not run into payment problems so far. In 2021, the company made a profit of 173 million euros on a turnover of 247 million euros. The three founders and shareholders have returned part of their paid dividends to cover possible losses. Bitvavo customers could simply access their credits while negotiating with DCG.
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