CoinLoan halts all withdrawals, user services

2023-4-26 01:25

Estonia-based crypto platform CoinLoan has halted all user withdrawals and activity, as announced in an April 25 blog post.

The company said it received a notice of restraint on disposition that requires it to halt all user operations, including user withdrawals.

The notice in question says that CoinLoan cannot dispose of assets without the consent of a provisional liquidator. It also suggests that bankruptcy proceedings are underway, though CoinLoan itself has not confirmed that it has filed for bankruptcy.

Instead, CoinLoan called the notice “unexpected.” The company said that the changes would take effect immediately and said that it has “no choice but to comply.”

CoinLoan previously limited user withdrawals in July 2022, around the time of widespread failures in the crypto lending market. It also reduced withdrawal limits in November 2022, around the time of FTX‘s collapse. The company justified those reductions based on higher-than-usual withdrawals rather than exposure to the affected companies.

On both occasions, CoinLoan set daily withdrawal limits to $5,000. It is unclear whether it reversed those withdrawal limits at other points in time.

The post CoinLoan halts all withdrawals, user services appeared first on CryptoSlate.

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