A blogger stated that Coinlist users have not been able to withdraw money for more than a week, that the company has liquidity problems and went bankrupt. CoinList, a cryptocurrency exchange and Initial Coin Offering (ICO) platform, made a statement on its official Twitter account. The company addressed fear, uncertainty and doubt (FUD) in the market.
“We want to address the issue of FUD directly because it has been on the rise recently,” CoinList wrote in a November 24 Twitter post. The company also announced that CoinList is insolvent, lacks liquidity and is not on the verge of bankruptcy. The exchange stated that the disruptions in withdrawals were caused by technical problems.
2/ We are upgrading our internal ledger systems and are migrating wallet addresses involving multiple custodians.
This is one of many efforts we are undertaking to offer our customers around the world better products and services while maintaining compliance.
— CoinList (@CoinList) November 24, 2022
Colin Wu, a blogger on cryptos, previously tweeted to his 245,000 followers that some community members, who are CoinList customers, have been unable to withdraw funds for more than a week due to maintenance work.
CoinList also claimed that it has $35 million worth of receivables from the bankrupt Three Arrows Capital. Wu stated that CoinList was missing $35 million. These statements by Wu triggered further concerns that the company may be experiencing liquidity problems and may be unable to pay its debts.
Based on record withdrawals from other exchanges, CoinList announced that they have systematically upgraded to relieve their customers, and accounts that cover many storage wallets should be migrated.
The company announced on November 23 that it took longer than expected to move cryptocurrencies due to unexpected technical glitches. The exchange stated that this also affects the tokens on the platform.
CoinList’s info page shows four cryptocurrencies that have not been active on withdrawals since November 15. The page also explains that there are poor performances on withdrawals due to a cryptocurrency that has experienced delayed deposits since November 16.
CoinList explained, “Once again, we explain, the withdrawal problem we encountered is purely due to a technical glitch, not a liquidity crunch.” The exchange said it holds all user assets in dollars and will share proof-of-reserve data with the public.
Cointelegraph contacted CoinList for more information but did not receive an immediate response.
On the other hand, CoinList announced on November 14 that it did not indirectly invest in the bankrupt crypto exchange FTX. However, users continue to be increasingly concerned about centralized platforms, although exchanges have announced that they are not investing in proof-of-reserve data or FTX to reassure their customers.