Amsterdam-based cryptocurrency exchange Bitvavo has detailed its plan to recover €280M from US-based Digital Currency Group (DCG) and its subsidiaries. The situation at Bitvavo is the latest in the ongoing meltdown in the crypto industry that has now seen the fall of FTX, once seen as too big to fail.
Earlier this month, Bitvavo mentioned that it had lent €280M to Genesis Global Capital, a subsidiary of DCG. The loan was offered as a way for Bitvavo’s customers to get access to off-chain staking services and thus receive interest on their cryptocurrency tokens. After the collapse of FTX in November, Genesis froze all withdrawals thus locking Bitvavo’s money in DCG.