Bitvavo founders need to lend financial hand to cryptocurrency exchange – IT Pro – News

Bitvavo CEO Mark Nuvelstijn says the Dutch cryptocurrency exchange does not have enough financial resources to protect customers if Digital Currency Group defaults on a €280 million loan. The founders therefore have to help themselves.

This is reported by Financie Dagblad that Nuvelstijn and two co-founders need to help each other financially to protect Bitvavo’s customers. Additionally, they may be able to apply for a loan from banks. Bitvavo initially claimed that the company had sufficient financial resources to reimburse potentially duped customers. Now it seems that there is a gap of about 180 million euros.

The 2021 annual accounts, in the hands of FD, show that Nuvelstijn and co-founders Jelle de Boer and Tim Baardse received a total of €110m in dividends in 2021. They have reportedly transferred around €95m to the account company of Bitvavo and pledged to transfer more money to fill the gap.

Bitvavo promised last week that “clients are unaffected by DCG’s liquidity issues.” The company has placed 280 million euros worth of cryptocurrencies with DCG. Currently unable to issue refunds. The cryptocurrency exchange previously stated that Digital Currency Group would repay the loaned amount in due time. Bitvavo tells FD that it still has faith in the financial partner.