Bitvavo Declines DCG's Proposal To Clear Off 70% Of Its Debt

Bitvavo, a Dutch crypto exchange and major creditor of the failing crypto firm Digital Currency Group, has dismissed DCG’s offer for a 70% debt repayment.

Bitvavo Rejects DCG’s Repayment Offer

Recently, Bitvavo announced that the troubled crypto firm DCG sent it a proposal to repay part of its debt. Bitvavo did not mention DCG’s plan for the remaining 30% of the debt.

However, Bitvavo was not pleased with the offer, as the exchange argued that DCG had enough funds to clear out the debt. “As one of the creditors of DCG, we cannot accept the company’s offer. We believe DCG has enough resources to allow a full repayment,” Bitvavo stated.

In addition, Bitvavo assured the public that the current crisis with DCG would not affect its operations, platform, or customers. “Bitvavo assumes responsibility for the outstanding amount and has transferred the risk to itself from its customers,” the company added.

This announcement comes after Bitvavo chose to pre-fund over $290 million worth of assets locked on the troubled DCG to prevent over-dependence on DCG. Meanwhile, the Dutch cryptocurrency exchange reported that it has sufficient resources to keep providing uninterrupted service to its consumers.

Although DCG is undergoing severe liquidity difficulty because of the bearish market, the company anticipates that it will be able to refund overdue sums.

DCG’s Woes Continue

Meanwhile, DCG’s troubles are far from over based on recent events. One of its subsidiaries, Genesis, filed for bankruptcy on Friday while reports continue to circulate that the firm’s finances are still not in good shape.

Also, other reports claim that DCG is willing to listen to offers for one of its popular subsidiaries, Coindesk, a media outlet the firm purchased for $500K but is now worth nearly $200 million. The reports added that Cardano founder, Charles Hoskinson, has expressed interest in purchasing Coindesk.

Despite the troubles of its subsidiaries, the DCG insists that each subsidiary operates independently and their issues do not affect one another.

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