CoinList, a crypto exchange and initial coin offering (ICO) platform, tweeted on Thursday to address misconceptions posted by a blogger stating people could no longer withdraw their funds.
Speaking on FUD, or ‘fear, uncertainty, and doubt,’ CoinList slammed the blogger’s claims the platform had faced liquidity issues amid the ongoing FTX-linked crypto crisis.
1/ There is a lot of FUD going around that we would like to address head on.
— CoinList (@CoinList) November 24, 2022
CoinList is not insolvent, illiquid, or near bankruptcy. We are experiencing technical issues that are affecting deposits and withdrawals.
CoinList hit back, stating: “There is a lot of FUD going around that we would like to address head on. CoinList is not insolvent, illiquid, or near bankruptcy. We are experiencing technical issues that are affecting deposits and withdrawals.”
It explained it had been upgrading its internal ledger systems and was migrating wallet addresses from multiple custodians to “offer our customers around the world better products and services while maintaining compliance.”
The news comes after Colin Wu, a cryptocurrency blogger, said to hundreds of thousands of his followers that “some community members” on the exchange could not access their funds, citing platform maintenance.
Some community members reported that Coinlist, the largest cryptocurrency crowdfunding platform, was unable to withdraw coins. The official reason is that the custody partner is undergoing maintenance, but it has lasted for more than a week. Coinlist incurs $35M loss in 3AC crash
— Wu Blockchain (@WuBlockchain) November 24, 2022
CoinList launched a $35 million USD creditor claim with Three Arrows Capital, which went bankrupt in recent weeks. Wu added the claim was a loss triggering concerns over the former’s liquidity.
CoinList aimed to resolve “custodian issues” causing crypto coins to take “longer than anticipated to migrate.” It added that on 23 November, one of its custodians faced an “outage […] unrelated to the migration,” leading to problems on the platform.
CoinList concluded: “Once again, this is purely a technical issue, not a liquidity crunch. We hold all user assets dollar for dollar. Regardless, this is not the quality of service we aspire to, and we apologize for the inconvenience. Proof of Reserves is on our roadmap.”
The news comes just weeks after a massive liquidity crunch hit now-bankrupt FTX, with the exchange’s former chief executive Sam Bankman-Fried stating everything was “fine” and that no issues were present.
