CoinLoan, a crypto lending platform, has temporarily lowered its withdrawal limits due to the current market difficulties.
JUST IN: CoinLoan, a Popular “Decentralized” #Crypto Lending Platform announces they are immediately restricting all user withdrawals over $5,000. pic.twitter.com/hfSv8r62G3
— CryptoWhale (@CryptoWhale) July 4, 2022
Due to market difficulties, the crypto lending platform has joined companies with limited withdrawals. Many platforms such as Celsius, Voyager, BlockFi, and Three Arrows Capital have taken similar steps.
In addition, Vauld, a cryptocurrency trading and lending platform funded by coin-based companies, stopped withdrawal, trading, and deposit functions yesterday due to many withdrawals by customers, suggesting the possibility of financial restructuring.
“The interest we paid on the interest accounts is obtained by granting over secured loans to other platform users. Therefore, in some cases, the estimated date of complete removal of assets from interest accounts precedes rather than after loan closing.”
For this reason, the company announced that it had set a withdrawal limit “to balance the flow of funds and avoid liquidity-induced disruptions.”
After the announcement, customers can withdraw a maximum of $5,000 every 24 hours. It also claims that users’ funds are safe with no exposure to Terra and 3AC
