(Previous summary: The largest crypto lender "Genesis will not get 1 billion new funds, and may file for bankruptcy! WSJ: Binance refuses to invest )
(Background Supplement: Taiwan government releases FTX victims? Financial Supervisory Commission: Overseas does not accept control! Only prevents money laundering, does not protect investors )
According to news from Wu Blockchain on the evening of the 24th, many community members said that some tokens (FLOW, MINA, CFG) of Coinlist, the world's largest cryptocurrency ICO crowdfunding platform, are in a state of being unable to withdraw funds. It is reported that Coinlist once lost 35 million US dollars when Three Arrows Capital (3AC) went bankrupt. The suspension of withdrawals this time is suspected to be a problem with Coinlist's liquidity.
Coinlist officially issued an announcement yesterday (23rd) to explain the suspension of withdrawals, saying that the escrow partner is "undergoing technical maintenance" which has caused the current situation where withdrawals cannot be made, and user funds are still safe:
The hosting partner is undergoing system maintenance, which took longer than expected. During this period, the deposit and withdrawal of $Flow, $ MINA, and $ CFG cannot be used normally.
Please rest assured that your funds are safe and thank you for your patience!
The community claims that the suspension of withdrawals has lasted for a week, or it may be caused by the explosion of Gemini and Genesis
According to feedback from community users, withdrawals have been suspended for a week.
It is reported that the list of Coinlist’s custody partners is Anchorage, BitGo Gemini Custody and Silvergate Bank. Among them, Gemini Custody is the service of Gemini, an exchange that has stopped withdrawals due to the influence of the lender Genesis. The custody partners mentioned by Coinlist may be Gemini Custiody.
Further reading: DCG CEO Letter to Shareholders｜Explanation of loan rumors between Genesis and DCG, this year's revenue may reach 800 million magnesium
In addition, Genesis, the world's largest cryptocurrency lender, whose parent company DCG also participated in Coinlist's A round of financing in 2018.
Therefore, there is speculation that the suspension of Coinlist withdrawals this time is related to its risk exposure in Genesis or Gemini, but it is not clear whether Coinlist has anything to do with the Genesis cash flow problem.
