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Dutch cryptocurrency exchange Bitvavo says it has €280 million ($297 million in USD) tied to Digital Currency Group (DCG), or 17.5% of the €1.6 billion Bitvavo says it has. manages deposits and other assets. Bitvavo assured customers that the situation “has no impact on the Bitvavo platform.”

Bitvavo claims a blog post that DCG is “having liquidity issues due to the turbulence in the crypto market” and that DCG has “suspended redemptions until this liquidity issue is resolved”.

But a DCG spokesperson said Reuters: that the funds are held by its “independent subsidiary”, Genesis, not DCG. Decode has reached out to DCG for further comment.

Bitwavo replied Reuters: that it “held DCG responsible for unavailable funds”.

DCG, led by SecondMarket founder Barry Silbert, is one of the largest and most prominent crypto companies in the crypto world. He owns Genesis, Grayscale, CoinDesk, Foundry and Luno.

Five weeks after the FTX collapse and bankruptcy filing did not treat DCG well.

Genesis froze withdrawals a month ago on his lender and did not unfreeze them. Gemini, the stock exchange owned by the Winklevoss brothers (not a DCG subsidiary), should in turn: stop repayments on its Earn product because its Gemini Earn partner is Genesis. Genesis reportedly owed to Gemini Earn users 900 million dollars.

Genesis’ troubles have thrown DCG’s finances into doubt.

On Nov. 22, Silbert told shareholders that DCG owed Genesis $575 million, but that “we’ve weathered previous crypto winters, and while this one may be tougher, we’ll come out of it stronger together.” Still on December 3rd Financial Times DCG owes Genesis $1.7 billion.

Grayscale Capital also faces significant competition from New York hedge fund Fir Tree Capital Management filing a lawsuit against the company claiming that his Grayscale Bitcoin Trust (GBTC) had “potential mismanagement and conflicts of interest.”

Grayscale Bitcoin Trust is a fund that gives investors exposure to Bitcoin without having to buy Bitcoin themselves. It currently trades at a -48.7% discount to the market value of the underlying asset, according to CoinGlass:.

On Friday, crypto analyst Will Clemente, co-founder of Reflexivity Research, took to Twitter to note the aggressive selling of multiple DCG-related cryptocurrencies over the past 48 hours, suggesting it could be DCG looking for liquidity.

Filecoin and: Flowboth of which Clemente claimed DCG was exposed to are down around 20% and 10% in the last 24 hours, according to CoinGecko.

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