Dutch cryptocurrency exchange Bitvavo said it was unable to access its funds in Digital Currency Group due to issues with Genesis Global Capital.
Dutch cryptocurrency exchange Bitvavo has filed a claim against Digital Currency Group (DCG) over €280 million blocked in the accounts of its subsidiary Genesis Global Capital.
“Bitvavo Custody BV, part of the Bitvavo Group, has used Digital Currency Group and its subsidiaries (DCG) to offer off-chain staking services to its customers. DCG is currently experiencing liquidity issues due to the current turbulence in the cryptocurrency market. As a result, DCG has suspended payouts until the liquidity issue is resolved,” the exchange said in a statement.
Bitvavo stated that it is awaiting a refund and that it has sufficient funds to “advance any blocked assets in DCG.” The company claims that Bitvavo customers are not at risk and can withdraw all their funds at any time.
A DCG spokesperson said that Bitvavo only works with Genesis Capital, not DCG, and asked the Dutch exchange not to mix different companies in the claims.
As a reminder, DCG manages several companies, including major cryptocurrency lender Genesis Global Capital, which froze withdrawals in November following the FTX crash.
According to Barron’s, the crypto lending service Genesis Global Capital has become the subject of an investigation by US regulators in connection with the suspension of operations and the company’s liquidity crisis.
Source: Bits
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