DCG Negotiates Debt Refund With Creditors, Gemini Calls For CEO Removal

• DCG (Digital Currency Group) is in talks with creditors to refund up to 70% of its outstanding debt.
• Bitvavo, a Dutch crypto exchange, has rejected DCG’s proposal and believes it has sufficient funds to repay the full amount.
• Gemini, another DCG creditor, has called for the DCG board to remove Barry Silbert as CEO.

Digital Currency Group (DCG), a crypto conglomerate owned by Barry Silbert, is in active negotiations with creditors to try and reach a settlement on its outstanding debt. The Dutch crypto exchange Bitvavo, one of the creditors, recently revealed in a blog post that DCG had proposed to refund up to 70% of the €280 million ($303 million) in debt it owes, with the residual amount still under discussion.

However, Bitvavo rejected the proposal, stating that it believes DCG has sufficient funds available to repay the full amount. This view is shared by Gemini, another DCG creditor, which recently published an open letter calling for the DCG board to sack Barry Silbert as CEO. Gemini’s co-founder, Cameron Winklevoss, has posted the letter on Twitter.

In its blog post, Bitvavo also expressed its confidence that a solution can be found which is satisfactory to all concerned. Furthermore, the exchange believes that repayment of the outstanding debt could still be made even if DCG subsidiary Genesis Global files for Chapter 11 bankruptcy. This has been suggested as a possibility by major media outlets like the Wall Street Journal, given the solvency issues experienced by the crypto lender.

So far, the negotiations between DCG and its creditors have been fruitless, and it is unclear when a resolution will be reached. It is unlikely that the situation will be resolved soon, as the sheer amount of debt owed by DCG is a lot for creditors to manage. In the meantime, the crypto community is keeping a close eye on the situation and is hopeful that a resolution can be found.