CoinLoan halts withdrawals and services following court order

According to incoming reports, the European crypto-lending platform CoinLoan, acting under the license of the Estonian Financial Authority since 2017, halted all its operations following a court notice.

Estonian regulators recently prohibited CoinLoan from disposing of any assets without getting direct provisional consent from their liquidator. Furthermore, the regulator noted that the order dictates that CoinLoan appoints Mr. Martin Yen as interim administrator of CoinLoan.

Based on recent reports, CoinLoan announced its compliance with the latest notice of restraint on disposition published on April 24. The court order is supposed to take effect instantly.

The order also notes that CoinLoan should suspend any enforcement of the debtor’s assets. Essentially, the debtors are disallowed from disposing of a single asset. However, the order noted that the party could appeal against the decision within a 15-day duration at the Tallinn Court of Appeal.

CoinLoan noted that they would adhere to the order and are working to resolve the issue immediately.

The network also clarified that its legal team has been working hard to prove that CoinLoan can fulfill its obligations. CoinLoan has to pause all activities, including withdrawals, a decision they note is complex and made with a heavy heart.

Based on the order, CoinLoan has seemingly already filed for bankruptcy, a statement yet to be verified by the platform.

CoinLoan’s CLT token

This network has its native token, CLT, which has been used for propelling daily business. Reports suggest that the network owns about 90% of the CLT tokens.

Some people have linked what is happening to CoinLoan to some events associated with Celsius and FTX. A Tweet read:

“Anyone noticing any similarities here between today’s price action of CoinLoan’s CLT token and the market price of FTT on Binance when CZ forgot to turn off the wash trading bots as FTX collapsed?”

Alex, one of the platform’s founders, is alleged to have gained massively from selling CLT tokens in the past years.

The CLT token has, however, reacted positively following the recent announcement. Based on data analysis from Coinmarketcap, CLT gained about $1.37 in the past 24 hours and is currently trading at about $8.54. After the announcement, the CLT token continued with an upsurge which started earlier in the day.