As the fallout from the FTX implosion continues across the pond, DCG Group is also reportedly facing financial difficulties and has suspended bailouts “until the liquidity crisis is resolved.”
The DCG group, a “strategic investor” that relies on its relationships to make the market profitable for its clients, also offers services to third parties who can provide access to the DCG network. for retail investors.
The Domino Effect
Bitvavo – a crypto exchange based in the Netherlands – is one of the others currently exposed to the DCG bailout. Fortunately for Bitvavo customers, the DCG issue will not affect Bitvavo customers, according to a spokesperson for the Dutch platform.
In a statement posted on its blog, Bitvavo assured its customers that despite having a €280 million business relationship with DCG Group, Bitvavo has been green since the launch of the platform. All assets locked in DCG can be redeemed if a Bitvavo customer wants to withdraw from the investment.
DCG Disclosure Has Only Experienced Users
As a full exchange with a crypto custodian, Bitvavo declares that all customer funds belong to Bitvavo only, unless the owner of the funds expressly tells it otherwise. For this reason, investments in DCG Group are only made when clients are notified. In addition, it is disabled by default on the Bitvavo platform, which means that customers will have to make that choice manually before they can invest. ,
The current market situation is sad for Bitvavo – due to the current market situation, Bitvavo has also announced that it will revise the staking amount given to customers in 2023. Platform customers can withdraw their money at any time , under the platforms’ T & Cs. , if the new staking rate does not become interest.