CoinList calls the reason for delays in withdrawals from the platform

According to the platform’s representatives, the problems are related to a failure of a third-party custodial service

25.11.2022 - 11:45

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2 min

What’s new? CoinList, the largest cryptocurrency crowdfunding platform, said that there have been many rumors and misinformation surrounding the company that needs to be dispelled. According to a statement on Twitter, the platform is not insolvent, illiquid, or close to bankruptcy. Delays in deposits and withdrawals are due to technical issues.

1/ There is a lot of FUD going around that we would like to address head on.CoinList is not insolvent, illiquid, or near bankruptcy. We are experiencing technical issues that are affecting deposits and withdrawals. — CoinList (@CoinList) November 24, 2022

Details on the issue. CoinList is currently updating internal databases and migrating wallet addresses involving multiple custodians. These actions are only part of the measures the company is taking to improve its product and comply with legal requirements.

CoinList has confirmed that there are technical issues that are causing a number of tokens to take longer to migrate than expected. These are assets such as ROSE, CFG, FLOW, and MINA. In addition, one of the third-party custodial services had a failure unrelated to the migration but impacted the operation of the platform.

At the end of the message, the team once again stressed that this is a technical issue, not a liquidity crunch. All user assets are backed by dollars in a 1:1 ratio.

Coinlist, a platform to support crypto startups, launched in 2020 with more than 10 million users. Coinlist Seed projects include the DeFi platform Acala, the Biconomy protocol, and blockchain monitoring platform Parsiq. In December, the platform’s co-founder Brian Tubergen entered the Forbes “30 Under 30” list among 15 leaders in the crypto industry.

Rumors of possible liquidity problems of the platform emerged after users began reporting the inability to withdraw funds. Analyst Colin Wu also linked the situation to the fact that the platform suffered losses of $35 million as a result of the bankruptcy of hedge fund Three Arrows Capital (3AC). 3AC oweda total of $3,5 billion to 27 investors.

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