DCG Update Statement (10-01-2023)

BitvavoJan 10, 2023

As previously reported, Bitvavo, along with other creditors and advisors, is actively engaged in conversations with DCG to recover the resulting debt as soon as possible.

Counter proposal

Yesterday, on Jan. 9, we received a (counter)proposal from DCG offering to refund ±70% of the outstanding amount in a period acceptable to Bitvavo. The residual amount is still under discussion with DCG as they are only willing to repay part of it. As creditors, the latter is not acceptable because DCG has sufficient funds available for full repayment.

Open letter

Earlier today Gemini published an open letter accusing DCG CEO Barry Silbert of deception and fraud. Amongst others, this letter calls for Silbert to be replaced as CEO. Gemini expresses confidence that, provided DCG's management is being replaced, there is still the possibility for a positive, out-of-court structured solution to the satisfaction of all parties concerned.Like Gemini, we share the confidence that a solution can be found to the satisfaction of all concerned.

Solutions remains in sight

The payback of the residual amount would not be jeopardized, even if Genesis files for Chapter 11, as suggested in the WSJ last week. The same applies for a possible US Investigation over internal transfers within DCG as reported by Bloomberg. However, in these cases and as mentioned before, timelines could be affected.

Certainty for customers

As consistently stated before, the current situation regarding DCG does not impact Bitvavo's customers, its platform and its services. Bitvavo has guaranteed the outstanding amount and thus assumed the risk on behalf of its customers.

Questions?

We put our customers first. These are not merely words, but are backed by our actions. Our strong, independent financial position enables us to handle the situation in this way.

We will continue to actively inform our customers about future developments. If you have any questions, please contact [email protected] or check out our FAQ.