Dutch cryptocurrency exchange Bitvavo has rejected a proposal from crypto company Digital Currency Group (DCG) to repay 70% of the debt it owes to the exchange.
Bitvavo announced on January 11th that it had received a counter proposal from DCG offering to repay about 70% of the outstanding amount in a term acceptable to Bitvavo.
The remaining balance amount is still under negotiation with DCG. Bitvavo said that as creditors they do not find the proposal acceptable, as they believe DCG has sufficient resources available for full repayment.
Bitvavo had earlier decided to pre-fund about $290 million in assets locked on DCG to avoid reliance on the troubled firm and emphasized that the current situation has no impact on Bitvavo’s customers, platform or services.
The situation for DCG has become more precarious after the United States Department of Justice reportedly launched an investigation against the firm in cooperation with the Securities and Exchange Commission.