AMSTERDAM, Dec 16 (Reuters) – Dutch cryptocurrency trade Bitvavo stated on Saturday it’s attempting to recuperate 280 million euros ($296.30 million) from U.S.-based Digital Forex Group (DCG) and its subsidiaries.

Bitvavo stated it had lent the cash to DCG subsidiary Genesis International Capital to be able to provide Bitvavo’s personal clients a product the place they obtained curiosity on their cryptocurrency tokens.

Genesis froze withdrawals in November following the collapse of FTX. It stated in a letter to purchasers in early December it was crafting a plan to protect belongings.

FTX filed for chapter on Nov. 11, leaving an estimated 1 million clients and different buyers going through whole losses within the billions of {dollars}. The collapse reverberated throughout the crypto world and despatched bitcoin and different digital belongings plummeting.

Bitvavo stated it anticipated to be reimbursed over time however it had sufficient funds to cowl the belongings for its personal clients. It stated its clients weren’t uncovered and will withdraw all their funds at any time.

A public relations agent for DCG on Saturday stated the accounts in query had been held at Genesis, not DCG itself.

“Genesis holds the (U.S.) regulatory licences vital,” it stated, including that Genesis was an “impartial subsidiary”.

A spokesperson for Bitvavo stated it held DCG accountable for the inaccessible funds.

“We’re in discussions with a number of entities of the group and given the mingling throughout the group we maintain DCG accountable for the excellent quantity,” a Bitvavo spokesperson stated.

“For completeness’ sake, we discuss with the Digital Forex Group and its subsidiaries.”

Bitvavo is registered with the Dutch central financial institution (DNB)as a digital belongings providers supplier to forestall cash laundering on its platform, however isn’t topic to prudential supervision by both the DNB or the Netherlands’ Monetary Markets Authority.

($1 = 0.9450 euros)

Reporting by Toby Sterling; Modifying by Josie Kao and Nick Macfie

Our Requirements: The Thomson Reuters Belief Ideas.

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