Crypto lender CoinLoan reduces daily withdrawal limit by 99%

Estonia-based crypto lending platform CoinLoan is slashing its daily withdrawal limit from US$500,000 to US$5,000, in hopes to prevent liquidity-related interruptions due to surges in customer withdrawals.

See related article: Three Arrows Capital files for Chapter 15 bankruptcy

Fast facts

• CoinLoan says its decision wasn’t driven by market instability and claims to be “probably the only company unaffected” by the collapse of Terra/USTC, Three Arrows Capital (3AC) and others, the lender said in a Monday blog post.
• The limits are intended to be temporary and took effect on July 4.
• CoinLoan joins a growing list of crypto firms to limit or freeze customer transactions and withdrawals in recent months amid the squeeze of the crypto winter and contagion effects of distressed hedge fund 3AC.
• Celsius Network, BlockFi and Vauld have all halted transactions in recent weeks.
• 3AC filed for Chapter 15 bankruptcy on Friday after reportedly receiving liquidation orders from a British Virgin Islands court. 

See related article: BlockFi among those that foreclosed on Three Arrows Capital: report