Bitvavo, a Dutch cryptocurrency exchange, said on Saturday that it is attempting to collect 280 million euros ($296.30 million).
From Digital Currency Group (DCG) and its subsidiaries in the United States.
Bitvavo stated that it had loaned the funds to DCG subsidiary Genesis Global Capital in order to provide Bitvavo’s own clients with a product in which they could earn interest on their cryptocurrency tokens.
Following the fall of FTX, Genesis stopped withdrawals in November. In an early December letter to clients, it stated that it was developing a plan to protect assets.
On November 11, FTX declared bankruptcy, leaving an estimated 1 million consumers and other investors with total losses in the billions of dollars. The crash resonated throughout the cryptocurrency world, sending bitcoin and other digital assets tumbling.
Bitvavo stated that it anticipated to be compensated in the future, but that it had sufficient finances to cover the assets for its own consumers. It claimed that its customers were not at risk and that they may withdraw all of their monies at any moment.
On Saturday, a DCG public relations representative stated that the accounts in issue were housed at Genesis, not DCG.
“Genesis possesses the (U.S.) regulatory permits necessary,” it added, adding that Genesis was a “autonomous subsidiary”.
Bitvavo’s representative stated that DCG was to blame for the unavailable monies.
“We are in negotiations with different entities of the company, and given the mixing within the group, we hold DCG accountable for the overdue amount,” stated a Bitvavo spokeswoman.
“We refer to the Digital Currency Group and its subsidiaries for completeness.”
Bitvavo is registered as a digital assets services provider with the Dutch central bank (DNB) to prevent money laundering on its platform, but it is not subject to prudential regulation by the DNB or the Netherlands’ Financial Markets Authority.
As a newbie in the cryptocurrency space, it’s normal for you to get confused of the difference between coins and tokens.
In most cases, you’ll see these two terms often used interchangeably in cryptocurrency platforms and blogs.
Asides from being a currency, a crypto coin is a means of exchange as well as a means of saving passively.
Some features common to most crypto coins include;They are primarily decentralized entitiesThey depend on a blockchainThey follow the cryptocurrency graph system.You can use crypto coins in many ways.
In most cases, you can even liken a coin to the regular money you have, as you can use it to pay for items.
Some ways to use crypto coins include;Money TransfereCommerceSavingsToken building (Ethereum)Making network decisions (Dash)What is a Crypto Token?The primary difference between crypto coins and tokens is the blockchain difference.
The market value or market cap is the total dollar value of all the shares of a company, or in the case of Bitcoin or any other cryptocurrency of all the mined currencies.
One way to think of market value is as a rough indicator of how stable an asset is likely to be.
It is important to note that even Bitcoin, the largest market value of cryptocurrencies, is still subject to volatility.
You may see references to market coverage for circulating supply or fully diluted supply.
Crypto market The market value of cryptocurrencies is an easy and straightforward way to find out how big a digital currency is, and it can help you make smarter investment decisions.
Market Value allows you to compare the total value of one cryptocurrency with another, allowing you to make more informed investment decisions.
