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Bitvavo has acquired previously locked DCG assets worth $296.7 million amid a liquidity crisis

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Digital Currency Group and Affiliates (DCG), which manages $296.7 million (€280 million) in deposits and digital assets for off-chain betting services Bitvavo, has suspended payments due to liquidity issues amid the bear market. However, Bitvavo announced the introduction of pre-locked assets, which prevent service disruptions caused by DCG for users.

With users proactively exploring self-custody options as a way to protect their funds, a severe liquidity crisis is expected to loom over the exchanges. DCG cited liquidity issues as it suspended payments, temporarily stopping users from withdrawing their funds. On the other hand, Bitvavo decided to allocate previously locked assets to ensure that none of its users would experience DCG liquidity issues.

“The current situation in DCG has no impact on the Bitvavo platform,” it read Advertising Where the company guarantees non-interruption of service to its users. According to Bitvavo, DCG intends to share a plan to pay off deposits due over time.

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Moreover, Bitvavo asserts that DCG’s debt will not have any negative impact on its day-to-day operations because the company has “been profitable since its inception and is in a strong financial position.” The company also reassured the status quo even if DCG failed to keep its end of the bargain.

Bitvavo manages approximately $1.7 billion (€1.6 billion) in deposits and digital assets, which are held 1:1 and fully redeemable by users.

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