Barry Silbert’s Digital Currency Group (DCG) is reportedly engaged in discussions with creditors, according to a lesser-known cryptocurrency exchange. The cryptocurrency conglomerate is said to be “actively participating” in the talks.
In a blog post released on Tuesday, Dutch crypto exchange Bitvavo stated that it had proposed to DCG that it repay up to 70% of the outstanding debt owed to the exchange, which totals €280 million ($303 million). “The remaining amount is still being discussed with DCG as they are only willing to pay a portion within a timeframe acceptable to Bitvavo,” the blog post read.
The author of the blog post also said he had refused the offer, as he believes DCG has the funds to make a full reimbursement. “has sufficient funds available for full reimbursement.”
Gemini’s Open Letter
The blog post also refers to an open letter addressed to DCG that was posted on Twitter by cryptocurrency exchange Gemini. The letter urged the DCG board to fire Barry Silbert as CEO of the company.
“Like Gemini, we share the confidence that a solution can be found to the satisfaction of all involved,” Bitvavo referenced the letter which was published by Gemini co-founder Cameron Winklevoss.
Genesis Chapter 11 Bankruptcy
Bitvavo also stated in the update that DCG still considers it possible to pay the owed amount, even if DCG’s subsidiary fails to make repayment. The major news outlets such as The Wall Street Journal have suggested bankruptcy due to the solvency issues of the crypto lender. In November, Genesis had $2.8 billion of outstanding loans on its balance sheet.
Gemini customers have been unable to withdraw from the “Earn” program since withdrawals were suspended. Genesis closed withdrawals last November for its clients.
No Impact on Bitvavo Users
The Dutch Crypto exchange reassured customers that they will not be affected by DCG’s situation. “[…] the current situation regarding DCG does not affect Bitvavo users, its platform and its services. Bitvavo has taken on the risk of the outstanding amount on behalf of its customers,” it wrote.
Digital Currency Group is a major cryptocurrency conglomerate with investments in dozens of crypto-related companies. Some of its holdings include well-known firms such as Chainalysis, bitFlyer, BitPay, Blockstream, Ledger, Ripple, Coinbase, eToro and Kraken, just to name a few.