Rumors of Loanbase’s Imminent Shutdown Run Rampant

Rumors run abound in the world of bitcoin. November has been a month spread wide with tales of China’s alleged legislation meant to restrict bitcoin trading and limit international transactions. While these rumors have not come full circle yet, one can see just how uncertain the digital currency arena can be.

Now, another rumor is striking at an inopportune time. BitLendingClub, now officially known as Loanbase, began as a seed investment in 2014. The company offers customers ways of investing and borrowing funds through blockchain technology. It also provides loans with more “affordable rates,” but a Reddit post announcing the platform’s imminent close is the cause of recent concern.

While the rumor regarding its shutdown has yet to be confirmed, users were treated to the following statement on social media:

“Dear Customers,

We’ve worked extremely hard to build a platform and a community which is uniquely positioned to provide the Bitcoin ecosystem with a greatly needed service. However, over the last year or so, the regulatory pressures have been increasing to the point that it is no longer feasible to maintain the operation of the platform. We are regretfully announcing that we will have to begin terminating the services effective immediately.”

The statement mentions that basic functionality will be maintained for the time being so customers can withdraw their funds and repay loans. The expected close date is scheduled for August 2017, though a specific day is not yet mentioned. Customers will have approximately 30 days to withdraw all their remaining monies once their loans are fully paid off. The site will the shut down once the final loan is completely repaid.

The concluding remarks of the announcement confirms just how volatile and unpredictable the world of bitcoin can be:

“Again, we’re extremely sad to be delivering this news, but that’s the reality of operating a business in the Bitcoin ecosystem.

Best Wishes, the BitLendingClub Team.”

NewsBTC will keep monitoring this story for further updates.