Crypto exchange CoinList said it is not near bankruptcy as it addressed the ongoing FUD. It added that it is not insolvent or illiquid and is just experiencing technical issues affecting deposits and withdrawals.
The platform dismissed the rumors on Twitter after users reported difficulties with fund withdrawals for over a week and said the event was purely a technical issue, not a liquidity crunch.
CoinList’s Official Statement
CoinList, which also serves as the biggest crypto platform for crowdfunding, revealed that it is upgrading its internal ledger systems and migrating wallet addresses involving multiple custodians. The move is expected to enhance its product and service offering while maintaining compliance.
Without mentioning any names, CoinList further added that the hold-up in crypto withdrawals was due to maintenance conducted by one of its custody partners, which faced an outage.
“As with any big undertaking, there are bumps along the way. Custodian issues mean some tokens are taking longer than anticipated to migrate (ROSE, CFG, FLOW, MINA). One of our custodians had an outage yesterday unrelated to the migration that impacted many tokens on CoinList.”
It was Chinese crypto reporter Colin Wu who revealed earlier that “some community members” using CoinList were “unable to withdraw for over a week due to maintenance.” Over the past several weeks, halting withdrawals have become an ominous sign of insolvency. Hence, the news was enough to instill fear among users of another potential collapse.
Crypto Businesses in Trouble
The focus in the crypto industry continues to be the FTX implosion, and community members are now speculating which other companies could get swept away in the fallout. Many prominent companies appear to be at 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 biggest and most sophisticated players in the world of crypto finance, is reportedly facing insolvency due to holding a significant chunk of loans owed by collapsed firms – FTX and Three Arrows Capital (3AC).
Crypto lending and trading platform BlockFi was yet another casualty that paused customer withdrawals earlier this month due to significant exposure to FTX. As a result of the fallout, the platform was reported to be exploring bankruptcy.