The Digital Currency Group and its affiliates (DCG), which manages $296.7 million (280 million euros) in deposits and digital assets of crypto exchange Bitvavo for off-chain staking services, suspended repayments citing liquidity problems amid the bear market. However, Bitvavo announced to prefund the locked assets, preventing DCG-induced service disruption for users.

With the Digital Currency Group (DCG) experiencing huge liquidation in the last 24 hours, speculation is rife about the stability of the platform. The crypto market is still not out of danger from the FTX related contagion. 

Will Clemente, co-founder of  ReflexivityRes on Twitter: "Several crypto coins related to Barry Silbert's DCG have been selling off aggressively this evening (FIL, ZEN, ETC, NEAR), leaving many speculators to wonder whether the selling is derived from DCG itself."

Dutch cryptocurrency exchange Bitvavo said it can’t access 280 million euros ($297 million) held at Digital Currency Group, according to a company blog post. Bitvavo also said the U.S.-based Digital Currency Group, or DCG, is “experiencing liquidity problems” and has therefore “suspended repayments” until the issue is resolved. The Dutch firm had been using DCG to “offer off-chain staking services to its clients,” but the company said the frozen funds would not impact its platform.

Grayscale and DCG never promoted the disruptive potential of cryptocurrency but encouraged the speculative aspect of wild trading and hype instead.

Crypto research firm Messari’s founder Ryan Selkis on Monday said Genesis and Alameda had bad loans and intertwined crypto borrower-lender relationships. FTX and Alameda bankruptcy could risk Genesis liquidation and may cause its parent Digital Currency Group (DCG) to go bankrupt.

Haseeb Qureshi, the Managing Partner at Dragonfly Capital, discussed the potential consequences of Genesis going into liquidation on a recent episode of Unchained’s “The Chopping Block.”

The collapse of FTX triggered an avalanche in crypto. Genesis and Digital Currency Group (DCG) are the most notable names among those affected.

Crypto news site CoinDesk, owned by Digital Currency Group (DCG), has received takeover interest including one that suggested a $300 million purchase price, according to Semafor, <a href="https://www.semafor.com/article/11/29/2022/online-news-site-coindesk-attracts-suitors-amid-crypto-crash">according to Semafor</a>.

A possible Chapter 11 bankruptcy of Genesis Trading and parent company DCG is still depressing the sentiment on the Bitcoin market. Genesis last commented on Twitter on November 16. Parent company DCG last spoke out on November 18 via the social media platform.