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Coinmotion suspends cooperation with Finnish cryptocurrency lenders

confusion In the cryptocurrency market, it seems to be spreading to Finnish companies. report Helsingin Sanomat.

Coinmotion, Finland’s leading cryptocurrency investor, announced Earlier this week, we disabled the cryptocurrency interest account service provided by Tesseract. As such, the customer will no longer be able to make new deposits to the service, but will still be able to request withdrawals from the service to Coinmotion.

The Finnish investment firm said on Tuesday that access to its services was immediately suspended to protect the interests of customers in a situation where “several crypto loan service providers are facing public difficulties”. Market uncertainty was “most likely” to continue to widen, he said.

“While this has not directly impacted Coinmotion’s operations, we are actively monitoring and investigating the impact on Coinmotion’s partners.”

Tesseract has raised around €21 million in mid-2021 from a group of investors including Finnish Icebreaker and Taaleri. Helsingin Sanomat pointed out on Tuesday that the company has grown rapidly in recent years, with revenues more than tenfold to 7 million euros and in 2021 he will post an operating profit of 2 million euros.

“Some operators want to minimize risk when there is considerable uncertainty in the crypto market.” Wu YichenCEO of Tesseract, said in the newspaper. “In general, we can say that we have temporarily suspended cooperation with some partners, while with some we continue as usual and with some we are working on new projects.”

Wu declined to specify where the company has invested funds in its accounts and whether it is working with the likes of FTX and Genesis.

FTX filed for bankruptcy earlier this month, leaving an estimated 1 million creditors facing billions of dollars in losses. The bankruptcy filing comes after a merger plan that was announced as abruptly as it was canceled, followed by reports of serious mismanagement, including: “Unprecedented failure of complete corporate control”was considered one of the most reputable exchanges in the industry.

American crypto lender Genesis said earlier in the week that it was trying to avoid bankruptcy. The announcement comes just days after lenders had to suspend customer redemptions due to the collapse of FTX. report Reuters.

Alexi Teiweinen – HT

https://www.helsinkitimes.fi/finland/finland-news/domestic/22556-coinmotion-suspends-co-operation-with-finnish-cryptocurrency-lender.html Coinmotion suspends cooperation with Finnish cryptocurrency lenders

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