Key Takeaways:
- FlowBank, a Swiss online bank, has been ordered into bankruptcy by FINMA for failing to maintain the required minimum capital.
- Launched in 2020, FlowBank was involved with Techteryx’s TrueUSD stablecoin and provided services to Binance.
- FINMA has assured that customers with up to 100,000 Swiss francs will be prioritized for recovery.
FlowBank, a Swiss online bank known for its cryptocurrency trading services, has been ordered into bankruptcy by the Swiss Financial Market Supervisory Authority (FINMA).
The regulator found that FlowBank had severely breached necessary standards, particularly failing to maintain the required minimum capital for its operations.
UPDATE: SWISS REGULATOR ANNOUNCES THE CLOSURE OF FLOWBANK, RELATED TO CRYPTOCURRENCIES, AND INITIATES BANKRUPTCY PROCEEDINGS
— BSCN Headlines (@BSCNheadlines) June 14, 2024
With no possibility of restructuring and concerns of over-indebtedness, FINMA concluded that the bank must be wound up.
Launched in 2020, FlowBank was the banking partner for Techteryx’s TrueUSD stablecoin and partially owned by CoinShares.
It also provided services to Binance. FINMA assured that customers with up to 100,000 Swiss francs would be prioritized for recovery.
Swiss regulator announced the closure of FlowBank, which is related to cryptocurrencies, and initiated bankruptcy proceedings. The bank is at risk of insolvency. FlowBank was a banking partner for Binance, serving as a custodian for some large traders that didn't want to leave…
— Wu Blockchain (@WuBlockchain) June 14, 2024
FlowBank had been under scrutiny since October 2021 for significant breaches of supervisory law.
Despite efforts to comply, further issues emerged, leading to the appointment of another supervisor in June 2023.
An investigation revealed numerous high-risk business relationships and large transactions lacking proper due diligence.
FlowBank, a Swiss bank, is bankrupt.
— Satoshi Club (@esatoshiclub) June 13, 2024
Financial Market Supervisory Authority (FINMA) opened bankruptcy proceedings against FlowBank SA (the Bank) with effect from 13 June 2024 at 8:00 a.m. As a consequence, the FINMA withdrew the license of the Bank as bank and securities… pic.twitter.com/UR91bbsRNE
FINMA withdrew FlowBank’s license on March 8, 2024, although this decision is currently under appeal.
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