Crypto News

CoinList breaks the silence, assuring users that it is not on the verge of bankruptcy

Crypto exchange CoinList said it is not close to bankruptcy as it deals with the ongoing FUD. It added that it is not bankrupt or illiquid and only has technical issues with deposits and withdrawals.

The platforms fire the rumors on Twitter after users reported difficulties with withdrawals for over a week, saying the event was a purely technical issue, not a liquidity crisis.

Official statement from CoinList

CoinList, which also serves as the largest crypto crowdfunding platform, announced that it is upgrading its internal ledger systems and Wallet-Addresses with multiple custodians migrated. This move is expected to enhance product and service offerings while maintaining compliance.

Without naming names, CoinList further added that the halt in crypto withdrawals was due to maintenance being performed by one of its custodial partners that was facing an outage.

“As with any great company, there are bumps along the way. Custodian issues mean migration of some tokens is taking longer than expected (ROSE, CFG, FLOW, MINA). One of our custodians had an outage yesterday unrelated to the migration that affected many tokens on CoinList.”

It was Chinese crypto reporter Colin Wu uncovered earlier that “some community members” using CoinList “were unable to withdraw for over a week due to maintenance.” In recent weeks, disruptions in withdrawals have become an ominous sign of insolvency. Therefore, the news was enough to create fears in users about another possible collapse.

Crypto company in trouble

The focus in the crypto industry remains on the FTX implosion, and community members are now speculating which other companies could be swept up in the aftermath. Many prominent companies seem to be on the cusp of Chapter 11.

For one, the trading arm of crypto conglomerate Digital Currency Group (DCG) — Genesis — halted withdrawals. The company, which was one of the largest and most sophisticated players in the world of cryptofinance, is reportedly facing bankruptcy because it holds a significant chunk of loans owed by failed companies — FTX and Three Arrows Capital (3AC).

Crypto lending and trading platform BlockFi was another victim, pausing client withdrawals earlier this month due to significant exposure to FTX. As a result of the fallout, the platform is said to be considering bankruptcy.

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Source: Crypto News Deutsch

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