The cryptocurrency exchange Bexplus announced that "due to force majeure, Bexplus will stop service from now on". Users were told to close their open positions and withdraw any funds within only a 24-hour period, before positions would be automatically closed and the withdrawal service would become unavailable.

Only four days prior, on July 14, Bexplus had published a press release offering "rewards worth up to $5,000 to new users who sign up and make their first deposit". The project also promised its users up to 21% interest on bitcoin kept with the exchange. Bexplus had also promised a 100% match on deposits to the platform, up to 10 BTC (currently priced at $235,550).

• "Notice on Indefinite Suspension of Bexplus Project" , Bexplus
• "Bexplus Exchange Announces $5,000 Giveaway for New Users" , press release
• "Corretora brasileira de criptomoedas fecha e dá 24 horas para clientes sacarem fundos" , Livecoins (in Portuguese)

Claiming that they had no exposure to the various high profile collapses in the crypto industry lately, CoinLoan announced that they nevertheless would be reducing account withdrawal limits as they anticipated liquidity issues. They announced that users could only withdraw up to $5,000 a day, but tried to reassure customers that "rest assured that your assets are safe" (as have several other crypto platforms before announcing insolvency).

Apparently forgetting the industry they're in, CoinLoan also wrote that their "strategy bars risky activities that could endanger CoinLoaners' funds".

• "Temporary change in withdrawal limits" , CoinLoan blog
• Tweet by Bitfinex'ed

The AEX crypto exchange is among a growing number of exchanges to limit customer withdrawals amidst a crypto downturn. In an announcement, AEX wrote that "we honestly admit that AEX Global platform has met some problems, which involve a bank run of more than 1 billion USD".

The exchange then announced they would be delaying the withdrawals of most popular cryptocurrencies for 36 hours "to avoid unnecessary panic withdrawal". A follow-up blog post the next day announced they would be allowing users to withdraw, but only up to $500 a day. They later adjusted the withdrawal limits to a more flexible model, but left them in place.

As an apology to their customers, AEX promised "AEX Shareholder Badges" to the people with the most funds in their platform. They also announced a Texas Hold'em Carnival to show their "appreciation" of their users, but they canceled it the same day. Perhaps focusing on the liquidity issue is the right choice...

• "Announcement on the adjustment of coin withdrawal function" , AEX
• "AEX New Journey: Thanks for All the Supports" , AEX
• "Announcement on Adjustment of Coin Withdrawal Rules" , AEX
• Tweet by AEX Global

The defi insurance protocol Bancor announced on June 19 that they would be suspending their impermanent loss protection due to "hostile market conditions". The feature sought to protect users from "impermanent loss", a risk when a person provides liquidity to a pool, the ratio of deposited assets changes, and the person winds up with more of the token that's worth less.

Bancor wrote in their announcement that "Withdrawals performed during this unstable period will not be eligible for IL protection. Users who remain in the protocol will continue earning yields and be entitled to withdraw their fully-protected value when IL protection is reactivated." Many view this as Bancor holding their crypto hostage, because they would take a major loss if they withdrew while IL protection was paused.

The post goes on to say that "two large centralized entities" (likely Celsius and Three Arrows Capital) have rapidly liquidated their $BNT positions and withdrawn a large amount of liquidity; Bancor also wrote that another entity has opened a large short against $BNT.

• "Market Conditions Update — June 19, 2022" , Bancor blog

Binance paused Bitcoin withdrawals for three hours on June 13, explaining that some network maintenance resulted in transactions becoming "stuck and not able to be processed successfully". Although founder and CEO Changpeng Zhao predicted the pause would only take thirty minutes, the issue took closer to three hours to resolve.

I love it when I go to my bank to grab some cash from the ATM and discover that I can't, because someone else's cash clogged up the pipe.

The pause occurred as Bitcoin was reaching record low prices not seen since 2020, contributing to the ongoing pattern of Binance suddenly pausing withdrawals or undergoing maintenance during periods of chaos in the crypto ecosystem.

• "Binance paused bitcoin withdrawals for several hours Monday due to a 'stuck transaction'" , CNBC