Dutch crypto exchange Bitvavo says Digital Currency Group (DCG) is withholding hundreds of hundreds of thousands of bucks due to liquidity problems.
In a current organization statement, Bitvavo explained that DCG, which offers off-chain staking solutions to Bitvavo, is suspending refunds till the liquidity crisis they encountered is resolved. .
Bitvavo says DCG’s problems will not have an effect on its platform.
“DCG is now encountering liquidity challenges due to the recent chaos in the crypto marketplace. Therefore, DCG has suspended repayment till this liquidity problem is resolved…
The recent condition at DCG does not have an effect on the Bitvavo platform.”
According to Bitvavo, which owns $one.six billion well worth of crypto assets, DCG is anticipated to pay out back its approximately $280 million in debt in excess of time. The crypto exchange also mentioned that it will not halt purchaser withdrawals due to DCG defaults.
“All Bitvavo customer credits and digital assets can be withdrawn immediately and at any time… DCG debt will not prevent Bitvavo from fulfilling this obligation.”
However, Bitvavo mentioned that they may well want to adjust the way their off-chain staking solutions operate in the long term, stating that they no longer feel the marketplace is secure ample to give staking rewards. Full bet.
“Due to recent marketplace disorders and to guard our consumers, off-chain strike costs will be reviewed in the 1st quarter of 2023.
While we recognize that long term off-chain staking rewards changes will have an effect on Bitvavo consumers, we have concluded that there is now no considerable or secure ample marketplace to give the share. current off-chain staking rewards in a way that meets our specifications.”
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