FlowBank, A Bank Supported By Coinshares Bangkrut, This Is The Cause!
JAKARTA - FlowBank, a bank backed by crypto investment giant Coinshares, has been declared bankrupt by the Swiss Financial Market Supervisory Authority (FINMA). This incident marks one of the most significant bankruptcy incidents in crypto banking history and raises serious questions about the future of digital finance.
In the steps taken to protect depositor interests, FINMA has started the bankruptcy process for FlowBank. The institution has confirmed that, based on available assets, prioritized deposits are expected to be fully paid. This provides a little relief amid widespread concerns about the security of funds in the crypto world.
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Coinshares And Its Involvement With FlowBank
According to CryptoNews information, in 2022, CoinShares raised its stake in FlowBank to 29.3% with an acquisition value of 24.7 million CHF (approximately IDR 453 billion). However, with the shocking news of bankruptcy, Coinshares chose to remain silent, not commenting on the current situation.
Founded in 2020 by Charles-Henri Sabet, FlowBank has lost its operational license from FINMA. With an announcement on its official website, the bank stated that all commercial activities had been discontinued. This is a major blow to customers and investors who have put their trust in this institution.
The FlowBank issue with FINMA is nothing new. Since October 2021, the bank has been under intense scrutiny due to a violation of capital requirements. The steps taken by FINMA in October 2022, including the appointment of independent auditors, do not appear to be enough to prevent a inevitable fall.