CoinLoan, a crypto-backed loan provider, has temporarily reduced traders’ withdrawal limits. The move was due to current market turmoil, according to the company.
Customers were restricted from withdrawing more than $5,000 each 24 hours following the announcement.
“The Interest we pay on the Intl Accounts is earned by issuing overcollateralized loan to other platform users. In some cases, the date for the complete withdrawal of assets from the interest accounts is before or after loan closure, CoinLoan announced.
The withdrawal limit was set by the company “to balance the flow of funds and to prevent liquidity-related interruptions.”
According to The Block the European crypto lender’s withdrawal restrictions are the latest example of a number of high-profile businesses that have limited withdrawals following market turmoil.
The problems that have affected Celsius, Voyager BlockFiCoinLoan reported that Three Arrows Capital and, have triggered a wave in withdrawals.
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