Bitvavo, an Amsterdam-based cryptocurrency exchange , has said it expects to get between 80% to 100% back of the €280 million owed by Digital Currency Group (DCG). However, in a statement released on Tuesday, the exchange noted that the expectation is based on an “in-principle agreement” whose details are to be finalized in the coming weeks.

In addition, Bitvavo noted that it expects the refund for its clients’ assets to be paid in cash, digital assets, cash and convertible preferred equity notes in DCG. The Dutch crypto exchange’s fund has been held by DCG-owned crypto lender Genesis since last year.

The announcement comes a day after the bankrupt crypto lender Genesis, which is owned by DCG, reached an in-principle agreement with its creditors on a restructuring plan that would either culminate in its sale or transfer to its equity creditors.

Watch the recent FMLS22 session on re-imagining the crypto market structure.

On January 20th, Genesis filed for bankruptcy protection in New York. The action was triggered by its exposure to two major crypto firms that collapsed last year, including FTX’s sudden fall in November. The crypto lender made efforts to raise capital last year but failed.

As a result, Genesis is estimated to owe more than 100,000 creditors including the New York-based crypto exchange, Gemini. The DCG subsidiary owes about $900 million to over 340,000 Gemini Earn customers.

DCG Sells Grayscale Assets to Raise Funds

Meanwhile, Finance Magnates reported that DCG has started selling off the holdings of Grayscale in several investment vehicles it operates. The assets of the subsidiary asset manager are being sold at half price and are intended to repay Genesis' creditors.

In other developments related to Genesis, Barry Silbert, the Chief Executive Officer of DCG, recently had a face-off with Cameron Winklevoss, one of the Co-Founders of Gemini, with regards to the debt payment process. The development led to a class action lawsuit against Genesis from three Gemini Earn customers. Separately, the United States Securities and Exchange Commission (SEC) also charged Gemini and Genesis for selling unregistered securities.

Genesis' troubled state reflects the current situation in the wider cryptocurrency market that is feeling the heat of the collapse of FTX and other crypto projects last year. The situation has dented investors' confidence in the cryptocurrency industry.