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Dutch crypto exchange Bitvavo says its Digital Currency Group (DCG) is withholding hundreds of millions of dollars due to liquidity issues.
In a recent company statement, Bitvavo To tell DCG, which provides off-chain staking services for Bitvavo, has suspended payments until the liquidity crisis it faces is resolved.
Bitvavo said the DCG issue should not affect its platform.
Due to the current turmoil in the cryptocurrency market, DCG is facing liquidity issues. As a result, DCG is suspending repayments until this liquidity issue is resolved
DCG’s current status does not affect the Bitvavo platform.
DCG is expected to pay down about $280 million in debt over time, according to Bitvavo, which holds $1.6 billion worth of euros in crypto assets. The crypto exchange also said it would not suspend customer withdrawals because of the DCG default.
All deposits and digital assets of Bitvavo customers are available for immediate withdrawal at any time. DCGs debt will not be an obstacle for Bitvavo to fulfill this obligation.
However, Bitvavo said it no longer believes the market is stable enough to provide sufficient staking rewards, pointing out that it may need to change how its off-chain staking service works in the future. I’m here.
In light of current market conditions and to protect our customers, the off-chain staking rate will be revised in Q1 2023.
We understand that future off-chain staking reward adjustments will impact Bitvavo’s customers, but we do not have sufficient scale or stability to offer our current off-chain staking rewards in a way that meets our standards. concluded that no such market currently exists.
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