FlowBank, an online Swiss bank offering cryptocurrency trading, has been shut down and declared bankrupt

FlowBank, a Swiss-based bank involved in cryptocurrency trading, had connections to many crypto platforms e.g. TrueUSD stablecoin issuer Techteryx

FlowBank, a Swiss online bank that offered cryptocurrency trading services, has been declared bankrupt after the country's financial regulator found it had breached operational standards.

FlowBank, which was established in 2020 and had ties to several crypto platforms, including TrueUSD stablecoin issuer Techteryx, crypto asset manager CoinShares, and reportedly Binance, was ordered to shut down on Thursday.

According to a statement from the Swiss Financial Market Supervisory Authority (FINMA) on June 13, FlowBank had breached the standards required for it to operate as a bank and no longer had the minimum capital required for its business operations.

The regulatory body also noted that there were concerns that FlowBank owed more money than it had, making it financially unstable and unable to be saved or reorganized.

"As a result of the bankruptcy, FlowBank can no longer provide any services. In particular, it can no longer accept or execute any payment orders," the statement read.

FlowBank declared bankruptcy on the morning of June 13, and all services provided by the bank were rendered inaccessible.

According to reports, the bank had assets valued at $760 million (CHF 680 million), managed over 22,000 client accounts, and employed around 140 staff members worldwide.

In June 2023, FINMA hired a supervisor to investigate FlowBank's financial activities and determine its compliance failures.

The investigation revealed that FlowBank had engaged in numerous higher-risk business relationships and processed large financial transactions without conducting proper due diligence, violating regulatory standards.

After discovering the breaches, FINMA ordered FlowBank to withdraw its banking license on March 8, 2024. However, this decision is being appealed at the Federal Administrative Court and has not yet become final.

News source：https://www.kdj.com/cryptocurrencies-news/articles/flowbank-online-swiss-bank-offering-cryptocurrency-trading-shut-declared-bankrupt.html

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