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Crypto Exchange CoinList Breaks Silence on Withdrawal Issue




After over a week that users have been unable to withdraw funds, the cryptocurrency exchange and Initial Coin Offering (ICO) platform CoinList has finally broken silence, citing technical issues as the reason for the problem and assuring users that assets are safe.

While news has been going round that the platform is on the brink of collapse, the exchange asserted that it is not insolvent, illiquid, or close to bankruptcy. 

CoinList maintains that it is currently battling custodian issues in which some tokens (ROSE, CFG, FLOW, MINA) are not migrating as expected. It, however, emphasized that it is on top of the situation.

While the exchange offered an unreserved apology to its esteemed customers, it seized the medium to inform users that Proof of Reserves will soon be rolled out. 

Meanwhile, the company WuBlockchain on Nov. 24 disclosed scary information about CoinList that the platform incurred $35M loss in 3AC crash, which presupposes that the platform is currently in financial crisis. 

The explanation provided by the exchange citing “custodian issues” remains elusive to its users as there was no detailed explanation regarding what it means. A review of its status page indicates “degraded performance” for withdrawals.

The glitch displayed on the platform has made withdrawal for four cryptocurrencies unavailable since Nov 15 while deposit delay has been in place since Nov. 16

Conspiracy theory Between CoinList and Collapse FTX exchange

Against the backdrop that CoinList has been facing withdrawal and deposit issues following the collapse of FTX exchange, many users have alleged that it has material exposure to FTX and alameda research but this has been repeatedly denied.

CoinList harped on the fact that it does not perform actions with users’ funds except it is authorized by the user. 

It is only a matter of time as subsequent events will establish whether CoinList has material exposure to FTX or not. It is noteworthy that since FTX collapse, many platforms like Genesis Global, Grayscale Investments and Digital Currency Group have been struggling to survive.