CoinLoan Is the Latest to Limit User Withdrawals

The measure will be lifted if market conditions allow, the crypto lender said.

AccessTimeIconJul 5, 2022 at 5:08 p.m. UTC
Updated Jul 5, 2022 at 5:43 p.m. UTC

Elizabeth Napolitano is a news reporter at CoinDesk.

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.

CoinLoan describes the new limits as “provisional,” and says it looks forward to lifting them as market conditions allow.


Read more about

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Elizabeth Napolitano is a news reporter at CoinDesk.

CoinDesk - Unknown

Elizabeth Napolitano is a news reporter at CoinDesk.