It is still a bumblebee in the land of cryptocurrencies and the Dutch cryptocurrency landscape is not unscathed. It was in there before cryptocurrency news to read that Genesis cryptocurrency lending platform evaluating the bankruptcy petition. Bitvavo, which will receive an additional $280 million from Genesis, has now responded to this new development.
Bitvavo sees the situation as part of the negotiations
The Dutch cryptocurrency exchange Battle he’s been part of a sticky situation for a long time. Genesis, a cryptocurrency lending platform, previously provided the service for Bitvavo which allowed customers to earn returns on their cryptocurrencies. But now that Genesis has had problems, the platform has stopped all registrations.
Thus, $280 million from Bitvavo is now tied to Genesis. This story has been going on for a while and all parties involved are trying to resolve it through negotiations. However, these negotiations have recently come under pressure from a open letter from the founder of Geminianother exchange that is part of the situation.
And with news that Genesis may still be considering filing for bankruptcy, the negotiations appear to be under even more pressure. Bitvavo sets itself in one update however, he places this news in the “context of the negotiating strategy”:
“The negotiations of the past period have recently entered a new phase. It is not uncommon for the parties to put pressure on each other during the negotiation process. We have seen this recently in the communication between Gemini and DCG in the public domain [de open brief, red.]. This may continue for a while. In this context of negotiating strategy we also place the message of a possible bankruptcy of Genesis”.
The Genesis bankruptcy changes nothing for Bitvavo
Furthermore, if Genesis were to file for bankruptcy, that would not change the prospect of reaching a settlement, Bitvavo said. “In that case, timelines may suffer and the process may take longer.”
Bitvavo once again emphasizes that the situation has no impact on its customers. The platform claims to guarantee the debt Genesis owes to the exchange and any losses will then be covered by Bitvavo itself.
