Bitvavo, a cryptocurrency exchange, has announced through a blog post on its official website that it has received a counterproposal from Digital Currency Group (DCG).
The counter proposal regarding debt repayment offered to refund at least 70% of the outstanding amount within a time acceptable to Bitvavo. However, the residual amount is still under discussion with DCG, as they are only willing to repay a portion within a period acceptable to Bitvavo.
According to the blog post, the exchange expressed that, as creditors, the proposal is not acceptable because DCG has sufficient funds available for full repayment.
After carefully evaluating its finances and assessing the financial position of DCG, Bitvavo has determined that the company has enough funds to repay the debt in total and has thus decided to reject the proposal, insisting on full repayment.
Meanwhile, another cryptocurrency exchange, Gemini, previously published an open letter accusing the CEO of Digital Currency Group (DCG), Barry Silbert, of deception and fraud.
In the letter, Gemini called for Silbert’s removal as CEO and highlighted several alleged wrongdoings. The letter also expressed confidence that with a change in management at DCG, a positive, out-of-court structured solution can be reached to satisfy all parties involved.
Like Gemini, Bitvavo shares this confidence that a solution can be reached to satisfy all parties involved. Bitvavo also stated that it is optimistic that a mutually beneficial solution can be reached for all parties involved.
The exchange is reportedly in a stable financial position and has determined that it has the means to repay the debt in full. However, Bitvavo’s position is that a change in management at DCG is necessary for a positive outcome.
The open letter from Gemini and the position expressed by Bitvavo both highlight the need for a change in leadership at DCG in order to find a beneficial solution for all parties involved. If the allegations of deception and fraud against the CEO are proven true, they would seriously undermine trust and confidence in the company.
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