Bitvavo crypto exchange strikes deal to recover 80-100% of clients’ missing assets
Dutch cryptocurrency trading platform Bitvavo announced on Tuesday that it reached an agreement to recover a large portion of its clients’ assets from Digital Currency Group (DCG). The company is the parent of Genesis, which filed for bankruptcy reorganization in the United States last month.
The Dutch company has been trying to recover the equivalent of 280 million euros in assets that firms owned by DCG were handling. Bitvavo said it is expected to recover 80 to 100 percent of that amount in cash, digital assets, and convertible notes in DCG. The first 70 percent will be received during a period that the Dutch company finds acceptable, Bitvavo said.
Bitvavo cautioned that the deal is an “in-principle agreement” which had not been formalized as of Tuesday. As such, it could still change.
The Dutch firm said, “we are optimistic because the vast majority of creditors, as well as DCG and Genesis, were involved in the construction of this plan and are in general agreement on the economics.”
Genesis was among the first organizations to allow bitcoin trading via an over-the-counter exchange. Along with Genesis, DCG also owns cryptocurrency news site CoinDesk, financing firm Foundry, and Grayscale Investments.
CoinDesk reported this week that DCG will sell off Genesis as part of a deal with creditors.