AMSTERDAM, Dec 16 (Reuters) – Dutch cryptocurrency change Bitvavo mentioned on Saturday it’s making an attempt to get well 280 million euros ($296.30 million) from U.S.-based Digital Forex Group (DCG) and its subsidiaries.
Bitvavo mentioned it had lent the cash to DCG subsidiary Genesis International Capital in an effort to supply Bitvavo’s personal clients a product the place they obtained curiosity on their cryptocurrency tokens.
Genesis froze withdrawals in November following the collapse of FTX. It mentioned in a letter to purchasers in early December it was crafting a plan to protect property.
FTX filed for chapter on Nov. 11, leaving an estimated 1 million clients and different traders dealing with whole losses within the billions of {dollars}. The collapse reverberated throughout the crypto world and despatched bitcoin and different digital property plummeting.
Bitvavo mentioned it anticipated to be reimbursed over time but it surely had sufficient funds to cowl the property for its personal clients. It mentioned its clients weren’t uncovered and will withdraw all their funds at any time.
A public relations agent for DCG on Saturday mentioned the accounts in query had been held at Genesis, not DCG itself.
“Genesis holds the (U.S.) regulatory licences mandatory,” it mentioned, including that Genesis was an “unbiased subsidiary”.
A spokesperson for Bitvavo mentioned it held DCG answerable for the inaccessible funds.
“We’re in discussions with a number of entities of the group and given the mingling inside the group we maintain DCG answerable for the excellent quantity,” a Bitvavo spokesperson mentioned.
“For completeness’ sake, we confer with the Digital Forex Group and its subsidiaries.”
Bitvavo is registered with the Dutch central financial institution (DNB)as a digital property companies supplier to forestall cash laundering on its platform, however will not be topic to prudential supervision by both the DNB or the Netherlands’ Monetary Markets Authority.
($1 = 0.9450 euros)
Reporting by Toby Sterling; Enhancing by Josie Kao and Nick Macfie
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