On November 24, cryptocurrency exchange Coinlist said it was not insolvent despite users reporting that they were unable to withdraw their assets.
1/ There is a lot of FUD out there that I want to address head-on.
CoinList is not insolvent, illiquid, or on the brink of bankruptcy. We are experiencing technical issues affecting deposits and withdrawals.
— Coin List (@CoinList) November 24, 2022
According to the cryptocurrency exchange, there was a technical issue affecting users’ deposits and withdrawals.
Wu Blockchain reported on November 24 that CoinList failed to process withdrawals on its platform for over a week. According to reports, the exchange said its custodial partner was undergoing maintenance.
However, CoinList describes this as spreading Fear, Uncertainty and Doubt (FUD). The exchange said it was upgrading its internal ledger system and migrating wallet addresses involving multiple custodians. It added that this is part of an effort to improve the customer experience while ensuring better compliance.
On the other hand, that status page Custodians are taking longer than expected to migrate these digital assets, the company said.
The ICO platform further reiterated that the hiccups were purely a technical issue and that all client assets are held in dollars. It apologized for the inconvenience and added that the proof of reserves will be published soon.
Following the recent FTX implosion, several cryptocurrency exchanges have come under heavy scrutiny.coin list Said Although we have no exposure to the failed stock exchange, we lost $35 million in the 3AC crash.