The French cryptobank Coinhouse is suspending withdrawals relating to its offer of crypto passbooks offering up to 6% annual returns. A binding decision stemming from Coinhouse’s exposure to Genesis Trading, a company itself exposed to FTX and which also suspended withdrawals due to tied up cash.
Dégâts collatéraux de FTX : Coinhouse suspend les retraits de son livret crypto
Coinhouse in the fog
Coinhousethe French cryptobank notably known for being the first to benefit from registration as a digital asset service provider (PSAN), today announced that its customers who have subscribed to its crypto passbook offer will no longer be able to withdraw their funds.
Yesterday we informed @CoinhouseHQ clients who invested in Crypto Passbooks of the temporary suspension of withdrawals.
— Coinhouse (@CoinhouseHQ) November 17, 2022
According to the company’s statement, this decision announced as temporary results mainly from its 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 because of its own exposure to FTX (to the tune of $175 million). .
🔴 LIVE – Follow the FTX deal in real time
Coinhouse says its platform is not impacted per se and the temporary suspension of withdrawals is only due to the counterparties of its crypto passbook offer :
“Counterparties used, including Genesis, announced on November 16 afternoon that they were facing a liquidity crunch: they blocked withdrawals because they cannot honor requests in time, due to global tensions in the crypto market. and pressure on liquidity. We had no choice but to note the default of these counterparties, and their impossibility of returning the crypto-assets entrusted to them, which forces us to suspend for the moment the withdrawals in the Passbooks as well as, as a precaution, investments. »
Nicolas Louvet, CEO of Coinhouseasserted on November 11 via a tweet that the bankruptcy protection of FTX and its subsidiaries had no consequences for Coinhouse and its clients’ funds:
📢 The bankruptcy protection (chapter 11) of @FTX_Official and its 130 subsidiaries has no consequences on the services offered by @CoinhouseHQ, our clients’ funds and the day-to-day management of our #crypto operations.
— Nicolas Louvet (@LouvetNicolas) November 11, 2022
In a tweet dated November 9, Nicolas Louvet specified that FTX was not used by the platform for buying and selling cryptocurrencies but that it benefited from the role of counterparty up to 5% for Bitcoin (BTC) and USDT and 20% in Ethers (ETH) for its crypto booklets.
According to the information available, just under 10,000 customers would benefit from this crypto passbook offering up to 6% annual returns.
In parallel with its registration of PSAN, Coinhouse obtained a license in Luxembourg from the Commission de Surveillance du Secteur Financier (CSSF) at the beginning of the year in order to be able to develop a subsidiary in the country.
unfortunate timing, Coinhouse announced the day before a partnership with Nortia in order to allow asset managers to take advantage of the various solutions offered by the cryptobank.
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Passionate about the world of decentralized finance and the novelties brought by Web 3.0, I write articles for Cryptoast to help make blockchain more accessible to everyone. Convinced that cryptocurrencies will change the future very soon.
Maximilien Prue
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