Dutch cryptocurrency exchange Bitvavo has rejected a proposal from crypto company Digital Currency Group (DCG) to repay only 70% of the debt it owes to the exchange.
On January 11th, Bitvavo announced that they had received a counter proposal from DCG offering to repay about 70% of the debt in a term acceptable to Bitvavo.
The remaining amount is still under negotiation. Bitvavo believes that DCG has sufficient resources to repay the entire debt and does not find the proposal acceptable.
In order to avoid relying on DCG, Bitvavo has pre-funded about $290 million in assets that were locked on the firm. The exchange has assured customers that the current situation has no impact on Bitvavo’s platform or services.
The situation for DCG has become more precarious after the United States Department of Justice reportedly launched an investigation against the firm in cooperation with the Securities and Exchange Commission.