26 May 2023 02:37, UTC
Reading time: ~2 m
According to the platform’s official announcement, the US regulators’ draconian regulations were the main reason for the company’s decision to cease operations.
Today, we are making the unfortunate decision to wind down Unbanked.
Please withdraw your funds (crypto + USD) as soon as possible from your accounts.
More details are available here: https://t.co/oWR7m3ZqlM
— Unbanked (@UnbankedHQ) May 25, 2023
The announcement also clearly shows its displeasure as Unbanked asserts that regulators in the United States are “actively trying to prevent companies (banks and fintechs) from supporting crypto assets even if they are not” when companies are trying to do it correctly and according to regulations.
These are the factors that limit the company’s ability to raise capital. It is known that Unbanked recently signed an open letter of intent to invest, intending to raise $5 million at a valuation of $20 million. While it did not say what regulations prevent them from receiving funding, the company said it had not received funding. The company also did not say whether it plans to file for bankruptcy.
Unbanked claims to have always maintained customer funds separate from business operations, and all funds have been maintained 1:1 regardless of the asset. All clients and those through the platform’s white-label programs should start withdrawing all funds (cryptocurrency and USD) as soon as possible.
The platform intends to leave the withdrawal function for the next 30 days, not waiting to start withdrawing. This includes wire transfers, ACH, Plaid, and crypto to wallets, whether LTC, USDT, UNBNK, or whatever assets your funds are currently holding.
Founded in 2017, Unbanked has raised $4 million from around 6,000 investors in five years of operation.
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