Bitvavo exchange intends to recover 80% of debt obligations from Genesis

Dutch cryptocurrency exchange Bitvavo announced that it will return about 80% of the $ 300 million of client funds previously frozen in the accounts of crypto lender Genesis Global Capital.

The Bitvavo team clarified that the refund will come from Genesis’ parent company, Digital Currency Group (DCG), in the form of cash, digital assets, and convertible preferred bonds.

“We have held discussions with several divisions of the group and believe that DCG is fully responsible for the amount not paid to Genesis Global,” Bitvavo representatives said.

The agreement of the parties will be published in the near future, and the details and repayment schedule – within a few weeks, they promise on the exchange. Bitvavo representatives clarify that refunds from DCG will not come immediately. However, the crypto exchange has enough own funds to pay off the losses of customers. What’s more, during the withdrawal blocking process by Genesis, Bitvavo clients were not exposed to any risk and could withdraw all their assets at any time.

Genesis Global has created a special committee that will represent the interests of unsecured creditors in court. The committee included seven of the top 20 unsecured creditors, including those from the Bitvavo crypto exchange team.