Coinlist, a cryptocurrency crowdfunding firm that was directly exposed to Three Arrows Capital (3AC), has suspended withdrawals from its platform.
They informed the public that their custodial partner is undergoing maintenance and that activities have to be halted as a result.
Suspended Activities In The Firm
Colin Wu, a Chinese crypto blogger and journalist, has alerted the crypto community to a new business that has frozen withdrawals following the market turmoil. This company, Coinlist, a crowdfunding crypto platform, which was grossly affected by the 3AC meltdown has seized all transactions on its platform due to said maintenance.
However, the company assured the public that there is no need for concern because the funds of all users and investors are secure. Colin Wu, though, questions the veracity of the firm’s assertion; most businesses have used this phrase when they were on the brink of liquidation and bankruptcy.
Wu shared information via Twitter, citing a message from Coinlist customer service on Twitter that indicated the reason for the suspension of deposits and withdrawals, which was due to the maintenance one of its custodial partners was undertaking at the time. But no name was given to this custodial partner.
Members of the community in light of this event reported and discussed their difficulties to withdraw funds held by this company. The company’s stated explanation is that one of its partners is undertaking maintenance, which has also affected the company, yet this maintenance has been ongoing for more than a week.
Could Coinlist Be On The Brink Of Liquidation?
Coinlist suffered losses of almost $34 million after the 3AC catastrophe.
Wu provided the audience with an indication as to who this possible partner could be, including Anchorage, Bitgo, Gemini, and a few more companies.
The fact that Gemini banned all withdrawals from its platform after running into problems with its sister company Genesis Global Capital hasn’t helped matters either. According to circulating rumors, Genesis Global Capital is on the verge of bankruptcy and liquidation.
Wu also noted that Coinlist, which had direct exposure to 3AC prior to the disaster, had suffered significantly as a result of the crash. The anonymous partner’s maintenance has continued for more than a week and is beginning to arouse suspicion in the cryptocurrency world.
Twitter users have questioned the company about the withdrawal freeze, and the team has answered by confirming that there is continuing maintenance.
Some Twitter users have used this circumstance to inform the public why they shouldn’t put their money in centralized exchanges due to events like these.
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