{"id":14362,"date":"2024-06-14T18:58:24","date_gmt":"2024-06-14T15:58:24","guid":{"rendered":"https:\/\/forklog.com\/en\/swiss-regulator-declares-flowbank-linked-to-coinshares-bankrupt\/"},"modified":"2024-06-14T18:58:24","modified_gmt":"2024-06-14T15:58:24","slug":"swiss-regulator-declares-flowbank-linked-to-coinshares-bankrupt","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/swiss-regulator-declares-flowbank-linked-to-coinshares-bankrupt\/","title":{"rendered":"Swiss Regulator Declares FlowBank, Linked to CoinShares, Bankrupt"},"content":{"rendered":"<p>The Swiss Financial Market Supervisory Authority (FINMA) has initiated bankruptcy proceedings against the local online bank FlowBank.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"de\" dir=\"ltr\"><a href=\"https:\/\/twitter.com\/hashtag\/FINMA?src=hash&#038;ref_src=twsrc%5Etfw\">#FINMA<\/a> er\u00f6ffnet Konkurs \u00fcber die FlowBank SA: <a href=\"https:\/\/t.co\/DGxN8mzde5\">https:\/\/t.co\/DGxN8mzde5<\/a><br \/>Informationen zum Konkursverfahren stellt die FINMA auf ihrer Webseite zur Verf\u00fcgung: <a href=\"https:\/\/t.co\/S00N1ASeVo\">https:\/\/t.co\/S00N1ASeVo<\/a> <a href=\"https:\/\/t.co\/NkCOi88mB3\">pic.twitter.com\/NkCOi88mB3<\/a><\/p>\n<p>\u2014 Eidgen\u00f6ssische Finanzmarktaufsicht FINMA (@FINMA_media) <a href=\"https:\/\/twitter.com\/FINMA_media\/status\/1801158678378058198?ref_src=twsrc%5Etfw\">June 13, 2024<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cThis measure became necessary because the bank no longer has the minimum capital required to operate. There are also concerns that the bank is excessively indebted. The aim of the bankruptcy procedure is to protect depositors,\u201d the statement said.<\/p>\n<\/blockquote>\n<p>According to FINMA, the bank&#8217;s management failed to take steps to address the issues.<\/p>\n<p>Regulatory representatives saw no prospects for restructuring and announced the need to liquidate FlowBank. The procedure will be handled by the law firm Walder Wyss AG.<\/p>\n<p>The bank had been operating since 2020, offering cryptocurrency trading services. It partnered with Techteryx, the issuer of the stablecoin TrueUSD. In March 2023, the latter already faced issues due to the closure of Signature Bank.<\/p>\n<p>In 2022, the digital asset management company CoinShares acquired a 20.8% stake in FlowBank for 24.74 million <span data-descr=\"Swiss francs\" class=\"old_tooltip\">CHF<\/span> (~$26.5 million at the time). Along with previous strategic investments made in October 2021, the firm increased its shareholding in the bank to 29.3% with a voting right share of 32.06%.<\/p>\n<p>FlowBank&#8217;s services were used by Binance. In a comment to <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2024-06-13\/binance-ceo-teng-sees-landmark-year-as-crypto-goes-mainstream\">Bloomberg<\/a>, the head of the crypto exchange, Richard Teng, stated that there are \u201cvery few assets\u201d in the Swiss institution.<\/p>\n<p>Back in August 2023, crypto custodian Prime Trust filed for bankruptcy under Chapter 11 of the U.S. Code in a Delaware court.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Swiss Financial Market Supervisory Authority (FINMA) has initiated bankruptcy proceedings against the local online bank FlowBank. #FINMA er\u00f6ffnet Konkurs \u00fcber die FlowBank SA: https:\/\/t.co\/DGxN8mzde5Informationen zum Konkursverfahren stellt die FINMA auf ihrer Webseite zur Verf\u00fcgung: https:\/\/t.co\/S00N1ASeVo pic.twitter.com\/NkCOi88mB3 \u2014 Eidgen\u00f6ssische Finanzmarktaufsicht FINMA (@FINMA_media) June 13, 2024 \u201cThis measure became necessary because the bank no longer has [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":14361,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1300,1229,1191,468],"class_list":["post-14362","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bankruptcy","tag-banks-and-fintech","tag-coinshares","tag-switzerland"],"aioseo_notices":[],"amp_enabled":true,"views":"16","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/14362","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=14362"}],"version-history":[{"count":0,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/14362\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/14361"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=14362"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=14362"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=14362"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}