French cryptobank Coinhouse suspends withdrawals on its offering of crypto passbooks offering annual returns of up to 6%. A binding decision resulting from Coinhouse’s exposure to Genesis Trading, a company in turn exposed to FTX and which has also suspended withdrawals for restricted liquidity.
Coinhouse in the fog
Coinhousethe French cryptobank known for being the first to benefit from the registration as a digital asset service provider (PSAN), today announced that its customers who have signed up to its cryptocurrency offer will no longer be able to withdraw their funds.
Yesterday we informed customers of @CoinhouseHQ have invested in Crypto Passbooks since the temporary suspension of withdrawals.
—Coinhouse (@CoinhouseHQ) November 17, 2022
According to the company’s statement, this decision announced as temporary primarily stems from his exposure to Genesis Tradinga company that had already found itself in difficulty following the debacle encountered by Three Arrows Capital (3AC), and which recently decided to suspend its withdrawals due to its exposure to FTX (for 175 million dollars).
🔴 LIVE – Follow the FTX deal in real time
Coinhouse claims its platform is not affected per se and the temporary suspension of withdrawals it is only due to the counterparts of its cryptocurrency offering :
“Used counterparties, in particular Genesis, announced in the afternoon of November 16 that they were facing a liquidity shortage: they have blocked withdrawals as they cannot honor requests in time, due to general tensions in the cryptocurrency market and liquidity pressure. We had no choice but to acknowledge the default of these counterparties, and their inability to return the crypto-assets entrusted to them, which forces us to suspend withdrawals from savings accounts for the time being and, as a precautionary measure, investments. »
Nicolas Louvet, CEO of Coinhousetweeted on Nov. 11 that the bankruptcy protection of FTX and its subsidiaries did not impact Coinhouse and its clients’ funds:
📢 The protection of the bankruptcy regime (Chapter 11) of the @FTX_Official and its 130 subsidiaries has no effect on the services offered by @CoinhouseHQour clients’ funds and the day-to-day management of our operations #crypto.
—Nicolas Louvet (@LouvetNicolas) November 11, 2022
According to the available information, just under 10,000 customers would benefit from this crypto wallet offering up to 6% annual returns.
In parallel with its PSAN registration, Coinhouse obtained a license in Luxembourg from the Commission de Surveillance du Secteur Financier (CSSF) earlier this year in order to be able to develop a subsidiary in the country.
👉 Also Read – Singapore Fund Temasek Loses $275 Million in FTX
The French unicorn of crypto wallets 🔒
A complete crypto experience, from purchase to protection
Receive a roundup of cryptocurrency news every Monday by email 👌
What you need to know about affiliate links. This page features investment related goods, products or services. Some links in this article are affiliated. This means that if you buy a product or register on a site from this article, our partner pays us a commission. This allows us to continue to offer you original and useful content. There is no impact on you and you can even get a bonus using our links.
Investing in cryptocurrencies is risky. Cryptoast is not responsible for the quality of the products or services presented on this page and cannot be held responsible, directly or indirectly, for any damage or loss caused as a result of using a good or service highlighted in this article. Investments related to crypto-assets are risky by nature, readers should do their own research before taking any action and only invest within the limits of their financial capabilities. This article does not constitute investment advice.
MFA recommendations. A high return is not guaranteed, a product with a high return potential carries a high risk. This risk-taking must be in line with your project, your investment horizon and your ability to lose some of these savings. Do not invest if you are not ready to lose all or part of your capital.
Read more on our Financials, Media Transparency and Legal Notices pages.