Estonia-based cryptocurrency platform CoinLoan has stopped all user withdrawals and activities, as announced in an April 25 blog post. Here are the details…
Cryptocurrency company stopped operations
CoinLoan, an Estonia-based cryptocurrency exchange, has made a statement that it will stop its operations, as we have also reported as Kriptokoin.com. The company stated that it should stop all user transactions, including user withdrawals. He said he received a “savings restriction notice” for this. The notice in question says that CoinLoan cannot dispose of its assets without the permission of a temporary liquidator. Also, CoinLoan has not confirmed that it has filed for bankruptcy. However, he also argues that bankruptcy proceedings continue despite this. The company uses the following expressions:
Our legal team has provided sufficient arguments to prove CoinLoan’s ability to meet its obligations. Appointing a temporary trustee seems like the easiest way for the court to find a solution by allowing an independent third party to verify the company’s finances. We will file an appeal, but we must also comply with the current court order.
The company “did not expect” this notification
As a result, it is stated that CoinLoan cannot dispose of its assets without the approval of the temporary liquidator. It also hinted that bankruptcy proceedings are ongoing, although the company has not confirmed that it has filed for bankruptcy. CoinLoan instead described the notification as “unexpected”. The company said the changes would come into effect immediately and that it “had no choice but to comply.” The company used the following statements in the blog post it shared:
A restriction notice received yesterday, April 24, 2023, obliges CoinLoan to stop all transactions for its users, including withdrawals. This action is unexpected and has an immediate effect. As a result, we have no choice but to comply with these requirements. We are doing everything possible to resolve this situation as soon as possible.
Withdrawal limit of $5,000
The lending platform has been weakening since July following the Terra crisis and the collapse of a number of major crypto funds. In July 2022, the user had to limit withdrawals. This limit was also raised in the FTX crisis of November 2022. In both cases, CoinLoan had set a daily withdrawal limit of $5,000. Now it needs to be clarified whether the platform will remove this withdrawal limit. The company said that behind these discounts were higher-than-normal withdrawals, as well as companies experiencing crashes. In both cases, CoinLoan has set daily withdrawal limits at $5,000. It is unclear whether it reversed these withdrawal limits over time.
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