AEUR Holders Could Face Losses Amid FlowBank Bankruptcy
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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.
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.
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
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