Blogger Colin Wu has spread the word on Twitter that cryptocurrency platform Coinlist has paused deposits and withdrawals.
The journalist said that Coinlist was among the companies that suffered from the collapse of the Three Arrows Capital (3AC) fund earlier this year. According to him, Coinlist lost $35 million in that crypto fund going bankrupt.
Coinlist stated that "CoinList is not insolvent, illiquid, or near bankruptcy." As for the deposit and withdrawal issue, Colist explained it's "purely a technical issue, not a liquidity crunch".
Coinlist full tweet thread:
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.
2/ We are upgrading our internal ledger systems and are migrating wallet addresses involving multiple custodians. This is one of many efforts we are undertaking to offer our customers around the world better products and services while maintaining compliance.
3/ 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.
4/ Once again, this is purely a technical issue, not a liquidity crunch. We hold all user assets dollar for dollar. Regardless, this is not the quality of service we aspire to, and we apologize for the inconvenience. Proof of Reserves is on our roadmap. More updates soon