CoinLoan, a crypto lender, temporarily changes its withdrawal limits

CoinLoan, an Estonia-based platform for crypto loans, is lowering its daily withdrawal cap from US$500,000 to US$5,000 in an effort to avoid liquidity-related outages brought on by spikes in customer withdrawals.

In a blog post published on Monday, the lender, CoinLoan, claimed that the failure of Terra/USTC, Three Arrows Capital (3AC), and other companies had not altered its decision-making process and that it was "possibly the only company unscathed."

The team says in the blog,

We are introducing a temporary measure – a reduction of the account withdrawal limit – in order to balance the flows of funds and prevent liquidity-related interruptions. Please note that this is only a precaution, as the current level of liquidity meets our users’ needs.

CoinLoan has recently joined a growing list of cryptocurrency companies that have restricted or frozen customer withdrawals and transactions due to the pressure of the crypto winter and the ripple effects of the troubled hedge fund 3AC.

Recently, transactions on Vauld, BlockFi, Voyager Digital, and Celsius Network have all been suspended.

After purportedly getting liquidation orders from a British Virgin Islands court, 3AC filed for Chapter 15 bankruptcy on Friday.

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