CoinLoan Halts Operations After Estonian Court Order Sparks Bankruptcy Buzz

CoinLoan, a European crypto-lending platform that’s been running under Estonia’s Financial Authority since 2017, has slammed the brakes on all operations following a stern court notice.

Estonian regulators dropped a bombshell, banning CoinLoan from touching any assets without explicit go-ahead from an appointed liquidator, Martin Yen, who’s now stepping in as interim administrator. The order, dated April 24, kicked in right away, freezing everything in its tracks.

The clampdown’s tight—CoinLoan can’t move a single debtor asset, and the company’s been quick to say it’s playing ball with the rules. They’ve got 15 days to appeal at the Tallinn Court of Appeal, but for now, it’s all hands off. In a statement, CoinLoan called the decision tough, admitting it’s pausing withdrawals and all activity with a “heavy heart.” Their legal team’s in overdrive, they say, scrambling to prove the platform can still meet its obligations despite the chaos.

Whispers of bankruptcy are swirling—some reports hint CoinLoan’s already filed, though the company hasn’t confirmed it. The timing’s brutal, coming off the heels of a notice that’s left them scrambling. Meanwhile, their native token, CLT, which powers the platform’s daily grind (and 90% of which CoinLoan reportedly owns), is oddly riding a wave. CoinMarketCap data shows CLT jumping $1.37 in the last 24 hours, now hovering at $8.54—an uptick that started earlier today and kept climbing post-announcement.

So Coin loan got froze today by Estonia and ceased all business. @Cryptadamist noticed a familiar name to our circle of @CelsiusNetwork bankruptcy. Our good Boy Alex made a massive number of transactions through their exchange. Hmm.

Interesting that these transaction happen to… https://t.co/alYpfLRGcZ pic.twitter.com/zKMRNwza7Q

— Keith (@ChazzonKe) April 26, 2023

Crypto folks are drawing parallels to past flops like Celsius and FTX. One X user quipped, “Anyone else see the déjà vu? CoinLoan’s CLT today feels like FTT on Binance when CZ ‘forgot’ to flip off the wash trading bots as FTX tanked.” There’s chatter too about co-founder Alex cashing in big on CLT sales over the years, adding fuel to the speculation fire. For now, CoinLoan’s in limbo—locked down, lawyered up, and watching its token defy the gloom.