Genesis ran into payment problems due to the malaise in the crypto industry. Shortly after the request for a form of deferment of payment by crypto exchange FTX, customers were also unable to withdraw their credits stored at Genesis.
In talks with several creditors, parent company Digital Currency Group is said to have previously warned of bankruptcy if the company did not receive a new injection of money soon. Proposals from creditors, Digital Currency Group and Genesis ultimately did not lead to an agreement, the insiders say.
The Dutch crypto platform Bitvavo previously announced that it would not be able to access 280 million euros in customer credits that were stored at Digital Currency Group, because the latter company is experiencing payment problems. It was about money that customers can lend to earn a return. Bitvavo recently reported that Digital Currency Group is willing to repay at least about 70 percent of that money, but that there is still uncertainty about the rest.
The Dutch crypto company says that customers will not notice this, because Bitvavo promises to guarantee the outstanding amount. In a message on its own website, Bitvavo also claims that bankruptcy proceedings at Genesis will not immediately jeopardize the money, because there are still “assets available”.
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