DCG Update Statement (23-12-2022)

Bitvavo23 dic 2022

Bitvavo can report positive progress regarding the situation at Digital Currency Group. DCG is currently experiencing liquidity problems. Previously we already reported that DCG has indicated that all outstanding balances will be repaid in due course.

Customer deposits guaranteed

The current situation at DCG has no impact on Bitvavo customers, its platform, and its services. Bitvavo has assumed the risks for its customers by covering the outstanding amount with its funds. Bitvavo will continue to provide the services our customers expect from us and all customer assets are available and can be withdrawn at any time.

Bitvavo has sufficient reserves

Bitvavo is financially healthy, with no long-term debt. Considerable profits have been generated in recent years; EUR 173 million in 2021 and approximately EUR 250 million in total to date. The company has built up substantial reserves to realize its international growth ambitions. But this capital can also be used to protect our customers against the consequences of problems that arise outside Bitvavo. Next to these reserves, the company has access to external credit facilities since 2021.

Our healthy financial position is also reflected in Bitvavo’s annual accounts. Our auditor has issued an unqualified opinion on 16 December 2022, taking into account the current situation. The annual accounts will be filed and will be available before the end of the year.

DCG will refund outstanding balances

DCG has been working proactively with the creditors and their advisors who presented a plan to facilitate reimbursements this week. A positive aspect of this is that the solution direction is suitable for all parties involved. The financial information DCG has shared with us shows that the group has sufficient resources to meet its outstanding obligations, including those to Bitvavo.

Questions?

We put our customers first. These are not merely words, but are illustrated by our actions. Our strong, independent financial position enables us to act 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.