CoinLoan Is the Latest to Limit User Withdrawals
The measure will be lifted if market conditions allow, the crypto lender said.
Jul 5, 2022 at 5:08 p.m. UTCUpdated May 11, 2023 at 5:44 p.m. UTC
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Estonia-based crypto lending company CoinLoan will limit withdrawals to $5,000 per 24-hour period to stave off a run on its funds, according to an announcement published on the company’s blog Monday. The policy became effective immediately.
The announcement claims CoinLoan is possibly the only company unaffected by the collapse of the Terra ecosystem and crypto hedge fund Three Arrows Capital, among others. Nevertheless, the company finds itself joining a number of other crypto lenders such as BlockFi and Vauld in freezing or limiting user transactions and withdrawals.
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CoinLoan describes the new limits as “provisional,” and says it looks forward to lifting them as market conditions allow.
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Elizabeth Napolitano was a news reporter at CoinDesk.