The Netherlands-based cryptocurrency exchange Bitvavo said it was unable to access €280 million ($297 million) held at Digital Currency Group (DCG). But DCG said the issues are with one of its subsidiaries – Genesis Global Capital.
In a blog post, Bitvavo said DCG is facing liquidity problems and has stopped repayments as of now.
“DCG is currently experiencing liquidity problems due to the current turbulence in the cryptomarket. As a result, DCG has suspended repayments until this liquidity issue has been resolved. DCG indicated that the outstanding deposits will be reimbursed and that it will present a plan in the coming weeks,” the blog said.
Bitvavo said it was using DCG to offer off-chain staking services to its customers.
A DCG representative said Bitvavo’s problems are with Genesis Global Capital, not DCG, and it has reached out to the Dutch company asking it to correct the post. Taking a hit from the collapse of FTX, Genesis Capital suspended redemptions and new loan originations last month.
Bitvavo holds nearly €1.6 billion in deposits and digital assets. It said its frozen fund amounting to €280 million will not impact its normal business and customers can withdraw their funds as usual.
