<p>Bitvavo, an
Amsterdam-based <a href=”https://www.financemagnates.com/terms/c/cryptocurrency-exchange/” class=”terms__main-term” id=”601e2e5f-0c28-4253-9ad4-5e6b251ba2fa” target=”_blank”>cryptocurrency exchange</a>, has said it expects to get back
between 80% to 100% of the €280 million it is owed by Digital Currency Group
(DCG). However, the exchange in a statement released on Tuesday noted that the
expectation is based on an “in-principle agreement” whose details are to be finalized in the coming weeks.</p><p>In addition, Bitvavo
noted that it expects the refund for its clients’ assets to be paid in cash,
digital assets, cash and convertible preferred equity notes in DCG. The Dutch
crypto exchange’s fund has been held by DCG-owned crypto lender Genesis since last year. </p><p>The announcement
comes a day after bankrupt crypto lender Genesis, which is owned by DCG,
reached in-principle agreement with its creditors on a restructuring plan that
would either culminate in its sale or transfer to its equity creditors.</p><p>Watch the recent FMLS22 session on re-imagining the crypto market structure.</p><p>Genesis on January
20th filed for <a href=”https://www.financemagnates.com/cryptocurrency/crypto-lender-genesis-files-for-bankruptcy-in-new-york/” target=”_blank” rel=”follow”>bankruptcy protection</a> in New York. The
action was triggered by its exposure to two major crypto firms that collapsed
last year, including FTX’s sudden fall in November. The crypto lender
had made efforts <a href=”https://www.financemagnates.com/cryptocurrency/crypto-lender-genesis-seeks-1b-emergency-loan/” target=”_blank” rel=”follow”>to raise capital</a> last year but failed. </p><p>As a result, Genesis
is estimated to owe more than 100,000 creditors including the New York-based
crypto exchange, Gemini. The DCG subsidiary owes about $900 million to over
340,000 Gemini Earn customers. </p><p>DCG Sells Grayscale
Assets to Raise Fund</p><p>Meanwhile, Finance
Magnates reported that DCG has started selling off the holdings of Grayscale in
several investment vehicles it operates. The assets of the subsidiary asset
manager are being sold at half price and are intended to repay Genesis’ creditors.</p><p>In other developments
related to Genesis, Barry Silbert, the Chief Executive Officer of DCG, recently
had <a href=”https://www.financemagnates.com/cryptocurrency/winklevoss-feud-with-genesis-leads-to-earn-users-class-action-request/” target=”_blank” rel=”follow”>a face-off</a> with Cameron
Winklevoss, one of the Co-Founders of Gemini, with regards to the debt payment
process. The development led to <a href=”https://www.financemagnates.com/cryptocurrency/news/gemini-winklevoss-twins-face-class-action-lawsuit-over-lending-products/” target=”_blank” rel=”follow”>a class action lawsuit</a> against Genesis from
three Gemini Earn customers. Separately, the United States Securities and
Exchange Commission (SEC) also charged Gemini and Genesis <a href=”https://www.financemagnates.com/cryptocurrency/sec-takes-gemini-genesis-to-court-for-selling-unregistered-securities/” target=”_blank” rel=”follow”>for selling unregistered securities</a>.</p><p>Genesis’ troubled
state reflects the current situation at the wider cryptocurrency market that is feeling the heat of the collapse of FTX and other crypto projects last year. The situation dented investors’ confidence in
the cryptocurrency industry.</p>
This article was written by Solomon Oladipupo at www.financemagnates.com.
