The platform for conducting token sales and the cryptocurrency exchange CoinList said withdrawals of certain assets were suspended on November 15 due to issues with a custodian partner. Users reported on social media that they had not yet been able to withdraw their funds.
Monitoring:
Our custody partner is undergoing maintenance that is taking longer than expected. During this time period deposits and withdrawals for FLOW, MINA and CFG are unavailable.Rest assured your funds are safe. Thank you for your patience!
— CoinList Support (@CoinListSupport) November 23, 2022
Last week CoinList warned about suspending withdrawals and deposits of Flow (FLOW), Mina Protocol (MINA), Oasis Network (ROSE) and Centrifuge (CFG) due to maintenance of a third-party custodian service. A week later, on November 23, the platform announced the resumption of operations with ROSE.
Journalist Colin Wu reported that users could not withdraw a broader range of coins than the company had stated.
CoinList’s custodial partners are Anchorage, BitGo, Gemini Custody and Silvergate Bank.
In 2018, Digital Currency Group participated in a Series A investment round for the company worth $9.2 million. However, there was no report of cooperation between CoinList and Genesis, which was on the brink of bankruptcy, part of Barry Silbert’s group, Wu noted.
Coinlist Custody Partners are Anchorage, Bitgo, Gemini Custody and Silvergate Bank. In 2018, DCG participated in the A round investment of Coinlist. It is uncertain whether Genesis, which is currently on the brink of bankruptcy, cooperated with Coinlist.
— Wu Blockchain (@WuBlockchain) November 24, 2022
CoinList is among the creditors of the collapsed hedge fund Three Arrows Capital (3AC). The entity owed the platform about $35 million or roughly 1% of total liabilities.
The founder and CEO of Akash Network Greg Osuri said he was unable to redeem on the platform the wrapped version of Bitcoin (WBTC) for the original asset. He also linked CoinList’s problems to the fallout from the collapse of 3AC.
I’m unable to redeem $WBTC to $BTC on @CoinList.
CoinList had significant exposure to 3AC and possibly more.
Getting bad vibes. A reminder to please withdraw your funds from centralized exchanges. pic.twitter.com/W8SstjIJBO
— Greg Osuri (@gregosuri) November 23, 2022
Philip Moran, head of Digital Opportunities Group, confirmed that users report withdrawals taking several days. He also noted that the platform is a popular on/off-ramp for WBTC among retail investors.
Looks like coinlist deposit/withdrawals are turned off.
Some chatter from folks saying they have had pending withdrawals for several days.Coinlist is a pretty popular WBTC on/off-ramp for retail.
— Phill (@abearnamedphill) November 24, 2022
According to CoinGecko, trading volume on CoinList over the past 24 hours stood at about $897,165. The 24-hour figure jumped 80%. The most popular pair is FLOW/USD — accounting for about 13% of trading volume.
CoinList, which had originally focused on conducting token sales, launched a cryptocurrency exchange in 2020.
In October 2021, following a funding round of $100 million the company’s valuation reached $1.5 billion.
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