Crypto exchange Bitvavo expects Digital Currency Group (DCG) to fulfill at least 80% of its obligations to the exchange.
- What: Bitvavo plans to recover about 80% of its debt owed by the Digital Currency Group (DCG)
- Why: Bitvavo believes that DCG has insufficient funds to pay for the full amount DCG owes them but should be able to offset atleast 80% of what it owes
- What next: DCG plans to sell Grayscale shares at 8% per share to raise the amount. So far it has raised $22m
Bitvavo seeks to recover €280m ($300m) from DCG which is about 80-100% of the total amount. They also plan to repay it using cash, digital assets, and convertible preferred equity notes in DCG.
The exchange expects the agreement to be sealed in a few weeks as other details are being worked out. 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.
Meanwhile, 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 to cover its debts. On the other hand, Gemini will have to contribute $100m to add liquidity for Gemini users.
1/ Today, @Gemini reached an agreement in principle with Genesis Global Capital, LLC (Genesis), @DCGco, and other creditors on a plan that provides a path for Earn users to recover their assets. This agreement was announced in Bankruptcy Court today.
— Cameron Winklevoss (@cameron) February 6, 2023
DCG has already sold Grayscale shares to raise the funds to pay Bitvavo. The share costs $8 per share and so far, DCG has raised $22m. According to the agreement DCG is yet to recover the remaining amount as demanded by Bitvavo in the coming weeks.
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