CryptoMediaClub
Thursday, August 28, 2025
  • All news
  • Bitcoin
  • Ethereum
  • Altcoins
  • NFT
  • Blockchain
  • Analysis
No Result
View All Result
  • All news
  • Bitcoin
  • Ethereum
  • Altcoins
  • NFT
  • Blockchain
  • Analysis
No Result
View All Result
CryptoMediaClub
No Result
View All Result
Home All news

AEUR Holders Could Face Losses Amid FlowBank Bankruptcy

16.08.2024
A A
0
120
VIEWS
ShareShare

Holders of the AEUR stablecoin, issued by Anchored Coins AG, are facing potential losses due to the recent bankruptcy of FlowBank SA, one of the financial institutions responsible for guaranteeing AEUR’s 1:1 peg to the Euro.

The Swiss Financial Market Supervisory Authority (FINMA) initiated bankruptcy proceedings against FlowBank SA on June 13, 2024, after it was revealed that the bank was severely undercapitalized and potentially over-indebted.

As a result, the collateral FlowBank SA holds to back AEUR tokens may be at risk, leaving AEUR holders in a precarious position.

FlowBank SA Potentially Over-indebted

On June 13, 2024, the Swiss Financial Market Supervisory Authority (FINMA) initiated bankruptcy proceedings against FlowBank SA, a key partner responsible for guaranteeing the 1:1 peg of AEUR to the Euro.

This move came after FINMA determined that FlowBank SA was significantly undercapitalized and potentially over-indebted, prompting fears of insolvency.

As a result, the collateral held by FlowBank SA to back the AEUR stablecoins has now been absorbed into the bank’s bankruptcy estate, leaving AEUR holders at risk of financial loss.

In response, Anchored Coins AG issued a statement to its clients and AEUR holders outlining the immediate impacts of FlowBank SA’s bankruptcy.

AEUR Holders Could Face Losses Amid FlowBank Bankruptcy
Source: Anchored Coins

The company confirmed that the collateral intended to secure the AEUR stablecoin’s peg is now part of the bankruptcy proceedings, with no preferential treatment.

Despite ongoing efforts to expedite the withdrawal of these funds and transfer them to other banking partners, the situation still needs to be determined.

Consequently, onboarding new clients and issuing and depositing AEUR and ACHF stablecoins have been temporarily halted.

While Anchored Coins AG reassures holders that AEUR tokens continue to represent a 1:1 claim against the company, they acknowledge the risk that the 1:1 redeemability might not be upheld if the collateral cannot be recovered.

Depending on the outcome of the bankruptcy proceedings, this could lead to proportional losses for AEUR holders.

FlowBank SA Deep in Troubles: Bankruptcy Imminent

FlowBank SA’s troubles, culminating in its bankruptcy, did not arise overnight. FINMA has been scrutinizing the bank since October 2021, when it first identified severe breaches of supervisory law.

These issues included inadequate capital reserves, poor organizational structures, and insufficient risk management practices.

In response, FINMA ordered corrective measures and appointed an independent auditor to oversee their implementation.

Despite these interventions, FlowBank SA continued to falter. In October 2022, further enforcement actions were taken as the bank failed to meet capital requirements and rectify its organizational deficiencies.

By June 2023, a monitor had been appointed to oversee the bank’s activities.

By March 2024, the situation had deteriorated to the point where FINMA withdrew FlowBank SA’s banking license, citing the bank’s inability to comply with regulatory standards.

Although this decision was appealed, ongoing financial irregularities led FINMA to place the bank into bankruptcy to protect depositors and creditors.

The bankruptcy of FlowBank SA poses a significant risk to AEUR holders. Anchored Coins AG relied on FlowBank SA as a key partner to secure the collateral that underpins the value of its AEUR stablecoin.

The potential impact on AEUR holders could be severe, especially if the bankruptcy estate cannot return the full value of the collateral.

The crisis is not the first time financial institutions tied to the crypto industry have faced significant challenges.

Similar concerns have been raised about the stability of financial arrangements underpinning digital assets, particularly in cases where third-party institutions hold collateral.

The company is actively pursuing all available avenues to recover the collateral and ensure the stability of its stablecoins. However, AEUR holders should remain vigilant and prepared for potential losses.

The post AEUR Holders Could Face Losses Amid FlowBank Bankruptcy appeared first on Cryptonews.

Share9Tweet6ShareSharePin2

Related Posts

Pepe Price Prediction: No Buyers, No Volume – Is This Meme Coin About to Fade Into Oblivion?
All news

Pepe Price Prediction: No Buyers, No Volume – Is This Meme Coin About to Fade Into Oblivion?

28.08.2025
0

Pepe (PEPE) has been the weakest performer among the top 5 meme coins this week, slipping 2.3% as trader interest...

Read moreDetails
APT Miner Launches Cloud Mining App, Supports Multiple Cryptocurrencies and Green Energy

APT Miner Launches Cloud Mining App, Supports Multiple Cryptocurrencies and Green Energy

28.08.2025
Mastercard Launches Stablecoin Settlements in EEMEA

Mastercard Launches Stablecoin Settlements in EEMEA

28.08.2025
The 2nd Edition of the CoinFerenceX Decentralized Web3 Summit: Builders, Investors, and Developers Meet Again to Shape The Web Space

The 2nd Edition of the CoinFerenceX Decentralized Web3 Summit: Builders, Investors, and Developers Meet Again to Shape The Web Space

28.08.2025
Google Cloud Launches DLT Platform to Modernize Global Capital Markets

Google Cloud Launches DLT Platform to Modernize Global Capital Markets

28.08.2025
Load More
Next Post
Bitcoin holds $56k support amid heightened volatility as options expiry looms

Bitcoin holds $56k support amid heightened volatility as options expiry looms

0 0 votes
Рейтинг статьи
Subscribe
Notify of
guest
guest
0 комментариев
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

Recommended

ChatGPT Empowers Digital Artist to Generate a Memecoin Worth $50M

ChatGPT Empowers Digital Artist to Generate a Memecoin Worth $50M

2 years ago
This New Pepe Coin is Raising $1m Every 24 Hours, Only 28 Days Left to Buy Pepe Unchained 

This New Pepe Coin is Raising $1m Every 24 Hours, Only 28 Days Left to Buy Pepe Unchained 

10 months ago
Ripple (XRP) Draws Major Attention in South Korea

Ripple (XRP) Draws Major Attention in South Korea

2 years ago

Something’s Close to an ATH But It’s Definitely Not What You Think

2 years ago

Categories

  • All news
  • Altcoins
  • Analysis
  • Bitcoin
  • Blockchain
  • Ethereum
  • NFT
No Result
View All Result

Highlights

Google Cloud Launches DLT Platform to Modernize Global Capital Markets

The Sandbox Founders Exit as Animoca Assumes Full Control in Major Overhaul

CFTC Adopts Nasdaq Tool to Hunt Insider Trading in Crypto

Webull Launches Crypto Trading in Australia via Coinbase Prime

TOKEN6900 Presale Ending in 24 Hours: Murad Says SPX6900 Will Be Bigger Than Bitcoin, While It Takes Aim at Ethereum

Trump Goes All In on DOGE But Maxi Doge Is the Only Meme Coin That Actually Goes All In – 15 Hours Left

Trending

APT Miner Launches Cloud Mining App, Supports Multiple Cryptocurrencies and Green Energy
All news

APT Miner Launches Cloud Mining App, Supports Multiple Cryptocurrencies and Green Energy

28.08.2025
0

Against the backdrop of ongoing cryptocurrency market volatility, APT Miner officially launches a new mobile cloud mining...

Mastercard Launches Stablecoin Settlements in EEMEA

Mastercard Launches Stablecoin Settlements in EEMEA

28.08.2025
The 2nd Edition of the CoinFerenceX Decentralized Web3 Summit: Builders, Investors, and Developers Meet Again to Shape The Web Space

The 2nd Edition of the CoinFerenceX Decentralized Web3 Summit: Builders, Investors, and Developers Meet Again to Shape The Web Space

28.08.2025
Google Cloud Launches DLT Platform to Modernize Global Capital Markets

Google Cloud Launches DLT Platform to Modernize Global Capital Markets

28.08.2025
The Sandbox Founders Exit as Animoca Assumes Full Control in Major Overhaul

The Sandbox Founders Exit as Animoca Assumes Full Control in Major Overhaul

28.08.2025
  • All news
  • Altcoins
  • Bitcoin
  • Blockchain
  • Ethereum
  • NFT
  • Analysis
Editor: cryptomediaclub.com@gmail.com
Advertising: digestmediaholding@gmail.com

Disclaimer: Information found on CryptoMediaClub is those of writers quoted. It does not represent the opinions of CryptoMediaClub on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoMediaClub covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.

© 2023 Crypto News. All Rights Reserved

No Result
View All Result
  • All news
  • Bitcoin
  • Ethereum
  • Altcoins
  • NFT
  • Blockchain
  • Analysis

Disclaimer: Information found on CryptoMediaClub is those of writers quoted. It does not represent the opinions of CryptoMediaClub on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoMediaClub covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.

© 2023 Crypto News. All Rights Reserved

wpDiscuz