CoinLoan Announces Temporary Reduction of Withdrawal Limit
Crypto-backed loans provider CoinLoan has temporarily reduced the withdrawal limit for traders. The company explained that the move was made due to the current market turmoil.
Following the announcement, customers have been restricted to a maximum withdrawal limit of $5,000 every 24 hours.
“The interest we pay on the Interest Accounts is yielded by issuing overcollateralized loans to other platform users. Hence in some instances, the estimated date of a complete withdrawal of assets from the Interest Accounts comes before, not after, loan closure,” CoinLoan stated in the announcement.
The company has imposed the withdrawal limit “to balance the flows of funds and prevent liquidity-related interruptions.”
According to The Block, the European crypto lender’s restriction of withdrawals has been the latest case among a series of recent high-profile crypto businesses that have restricted withdrawals due to various forms of financial distress following the recent turmoil in the market.
The issues that have affected Celsius, Voyager, BlockFi, and Three Arrows Capital have triggered a wave of withdrawals, CoinLoan stated.
Celsius Network Slashes 25% of its Workforce amid Potential Insolvency