3AC-exposed Coinlist suspends trading

3AC-exposed Coinlist suspends trading

Coinlist, a company that specializes in cryptocurrency crowdfunding and has direct dealings with Three Arrows Capital (3AC), has temporarily halted withdrawals from its platform.

They alerted the public that their security partner is undergoing maintenance, and as a result, all operations are need to come to a halt until further notice.

Activities Within the Company Have Been Put on Hold

Colin Wu, a Chinese crypto blogger and journalist, has brought to the attention of the cryptocurrency world a new company that, in response to the recent market instability, has blocked withdrawals. Because of the maintenance, one firm, Coinlist, which is a crowdfunding site for cryptocurrencies and was severely impacted by the breakdown of 3AC, has halted all transactions that take place on its platform.

On the other hand, the corporation has reassured the general public that there is no need for alarm because the money of all users and investors is safe. Colin Wu, on the other hand, has some doubts about the reality of the company's claim; most companies have used this term when they were on the verge of going out of business or filing for bankruptcy.

The information was shared by Wu via Twitter, and he cited a message from Coinlist customer service on Twitter that explained the reason for the suspension of deposits and withdrawals. The maintenance that one of Coinlist's custodial partners was performing at the time was the cause of the suspension of deposits and withdrawals. However, this custodial partner was never identified by name.

As a result of this occurrence, members of the community have noted and discussed the challenges they have when attempting to withdraw monies stored by this firm. The excuse provided by the firm is that one of its partners is performing maintenance, which has also had an effect on the company, despite the fact that this maintenance has been going on for more than a week.

Is It Possible That Coinlist Is Close To Going Out Of Business?

Following the 3AC disaster, Coinlist was hit with losses of roughly 34 million dollars.

In his presentation, Wu gave the audience a hint as to who this potential business partner may be. Among the firms he mentioned were Anchorage, Bitgo, and Gemini, as well as a few others.

The fact that Gemini stopped allowing any withdrawals from its platform after experiencing issues with its sibling business Genesis Global Capital hasn't helped matters, either. There are whispers going around that Genesis Global Capital is close to declaring bankruptcy and going out of business entirely.

Coinlist, which had direct exposure to 3AC before the disaster, had suffered significant losses as a result of the crash, as Wu also pointed out in his analysis of the situation. More than a week has passed since the anonymous partner began their maintenance, which is beginning to raise eyebrows in the world of cryptocurrency.

Users of Twitter have asked the company about the withdrawal freeze, and the team has responded to their inquiries by confirming that there is ongoing maintenance.

A number of people on Twitter have taken advantage of the situation to explain to the general public why they shouldn't put their money in centralized exchanges because of occurrences such as these.

Ojike Stella

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