Due to time restrictions, users can only withdraw up to $5 000 daily from the platform

Crypto lender CoinLoan decreases its withdrawal limit by 100 times

05.07.2022 - 06:40


1 min

What’s new? Estonia-based crypto platform CoinLoan has reduced the daily withdrawal limit from $500 000 to $5 000. The decision was taken in order to prevent interruptions to the platform’s liquidity. The restrictions took effect on July 4 and, as the platform’s representatives noted in a blog post, are temporary in nature. They add that CoinLoan is probably the only company not affected by the Terra collapse and the bankruptcy of Three Arrows Capital (3AC).

CoinLoan’s blog post

What else did CoinLoan say? Representatives of the project note that the company’s liquidity is at a stable level. Lowering the withdrawal amount threshold is a precautionary measure, as CoinLoan customers have started actively withdrawing funds in recent weeks. They added:

“Yet, like any company, we must take notice of the market. The turmoil caused by the issues at several of its participants (BlockFi, Celsius, Voyager, and others) is impacting the whole industry. One of the consequences is a spike in withdrawals of assets from CoinLoan.”

Earlier, crypto platform Vauld suspended withdrawals, trading, and depositing. The company said that amid the collapse of Terra and the bankruptcy of 3AC, as well as the suspension of withdrawals by the Celsius platform on June 12, customers withdrew more than $197,7 million from Vauld.

Subscribe to Getblock Magazine and stay up to date with the latest news from the world of cryptocurrencies and the digital economy