CoinList denies insolvency rumors, claims technical difficulties causing issues with withdrawals

Crypto exchange CoinList on Nov. 24 said it was not insolvent, despite its users reporting their inability to withdraw assets.

1/ There is a lot of FUD going around that we would like to address head on.

CoinList is not insolvent, illiquid, or near bankruptcy. We are experiencing technical issues that are affecting deposits and withdrawals.

— CoinList (@CoinList) November 24, 2022

According to the crypto exchange, it was experiencing technical issues affecting its users’ deposits and withdrawals.

Wu Blockchain reported on Nov. 24 that CoinList had failed to process withdrawals on its platform for over a week. According to the report, the exchange said its custodial partner was undergoing maintenance.

However, CoinList has described this as spreading fear, uncertainty, and doubt (FUD). The exchange explained that it was upgrading its internal ledger systems and migrating wallet addresses that involved multiple custodians. It added that this was part of its effort to improve its customers’ experience while ensuring better compliance.

Meanwhile, its status page shows that four cryptocurrencies, ROSE, CFG, FLOW, and MINA, are currently unavailable for deposits and withdrawals since Nov. 15. According to the firm, the custodian is taking longer than anticipated to migrate these digital assets.

The ICO platform further reiterated that the hiccups were purely technical issues and that all customers’ assets are held dollar for dollar. It apologized for the inconvenience, adding that it would publish its proof of reserves soon.

Several crypto exchanges have come under intense scrutiny following FTX’s recent implosion. CoinList said it has no exposure to the bankrupt exchange but incurred a $35 million loss in the 3AC crash.