Like Celsius before it, Coinflex cited “extreme market conditions” and continued uncertainty as reasons for halting all withrawals.
The massive crypto-crash of 2022 is becoming increasingly like a classic attack against the banks.
Coinflex, a crypto-based loan and financial exchange platform Coinflex surprised users on Thursday by announcing that it would stop any withdrawals due to “extreme marketplace conditions” and the ongoing uncertainty. Users are unable to withdraw money from Coinflex accounts at the time of writing. Coinflex accounts. The tense pause comes a week after a similar abrupt withdrawal freezing in Celsius and Binance, two of the largest cryptocurrency exchanges in the world.
In his blog article, Coinflex C.E.O. Mark Lamb stated that Mark Lamb was “confident” that the situation could be sorted out and restore withdrawals. The market conditions aren’t looking great, but. Bitcoin dropped to its lowest level in the last 18 months, sending thousands of cryptocurrency owners swimming to shore. Lamb offered an estimated date when withdrawals could be allowed once more on June 30, with an update scheduled for June 27.
“Please keep in mind this is an estimate in light of our current knowledge of the situation,” Lamb said. “We will provide more information on the specifics and update this situation when possible.” Coinflex did not immediately respond to requests for information.
Coinflex was not the only one to feel the scorching heat this week. On Wednesday, the trading platform Voyager announced it was decided to reduce the daily withdrawal limit by over half. from $25,000 to $10,000. Voyager’s tightening of belts came when it revealed it was considering suing an order of default to unstable Crypto hedge fund Three Arrows Capital. Voyager asserts that Three Arrows Capital owes the company a staggering amount of $666 million in loans that are not paid. This hedge fund has reportedly did not meet demands for margins from lenders at the beginning of this month. Voyager has not yet responded to a request for comments.
The horror show of crypto withdrawals started last week when it was Celsius. Babel Finance, another major player in the industry, came in a day later due to what they called “major fluctuations” in the crypto market.
There are now serious questions about whether crypto-holders will ever receive their cash. In a piece of worrying news last week, Celsius made it clear that it would be suspending its usual Twitter Spaces and Ask Me Anything sessions as it “navigates the most difficult issues.”