Crypto exchange CoinList released a Twitter thread on Nov 24 addressing FUD surrounding the platform. The platform took this step after reports surfaced that users had difficulty withdrawing funds from the platform.
Due to the current state of affairs in the crypto space, these reports sparked fears regarding CoinList liquidity. As a direct response to these fears, the platform stated in its tweet:
CoinList is not insolvent, illiquid, or near bankruptcy. We are experiencing technical issues that are affecting deposits and withdrawals.
Colin Wu, a crypto-focused blogger, initially released news about withdrawal issues facing the CoinList exchange. Using his Twitter handle, Wu noted that the pause to withdrawals had lasted for one week.
Giving a likely reason for the pause in withdrawals, Wu pointed directly at the $35 million loss incurred by CoinList after the crash of crypto hedge fund Three Arrows Capital.
In response to this claim, CoinList stated in its tweet that it was upgrading its internal ledger systems. They also noted that they were migrating wallet addresses linked with multiple custodians.
In the tweet, the company emphasized that these efforts would result in better services and products for its global users. However, current efforts will comply with relevant laws.
CoinList also cited "custodian issues" as a factor behind the unavailability of certain digital assets on its platform. According to the platform, some crypto assets “are taking longer than anticipated to migrate.”
Additionally, an unnamed custodian associated with CoinList suffered an outage on Nov 23. That event also impacted the availability of specific tokens on the platform.
