Enabling Tesseract Group’s interest account service in Coinmotion will be suspended

Coinmotion Oy has decided to suspend Tesseract Group Oy’s interest account service for its customers immediately. It is therefore no longer possible to make new deposit orders to Tesseract Group’s interest account service from Coinmotion’s service, but the user can still make withdrawal orders to withdraw funds back to Coinmotion’s service. Unfinished interest account deposits are returned directly to the customer’s account.

Coinmotion has suspended access to the interest account service produced by Tesseract in order to protect the interests of customers in a situation where several virtual currency loan service providers have publicly run into difficulties

We would like to emphasize that the customer funds managed by Coinmotion themselves are safe. We are a Payment Institution and a Virtual Asset Service Provider supervised by the FIN-FSA. The legislation defines how regulated service providers must store customer funds. Regarding cryptocurrency assets, about 98% of Coinmotion’s managed crypto assets are in cold wallets and the rest in the company’s hot wallets.

We have opened the operating logic of our service and customer asset management to the FIN-FSA, and e.g. the customer funds held by Coinmotion are recorded in the annual financial statements. The auditor also annually checks that Coinmotion’s customer funds exist.

Our customer service can be congested from time to time. We will send more information to people who have used an interest account in the next few days. We will also personally contact people with a premium interest account in the coming days for the withdrawal process. 

Questions & Answers

1. Why has Coinmotion Oy decided to stop enabling Tesseract Group Oy’s interest account service for its customers?

Coinmotion has suspended access to the interest account service produced by Tesseract Group Oy in order to protect the interests of customers in a situation where several virtual currency loan service providers have publicly run into difficulties.

2. Is it necessary to apply a withdrawal order to the funds in the interest account?

It is not necessary to set a withdrawal order to the funds.

3. Does the market situation affect the interest account service?

The sphere of influence of the current market events will most likely expand. And while this has not directly affected Coinmotion’s operations, we are actively monitoring and investigating the effect on Coinmotion’s partners.

4. Are the funds in the interest account safe?

Tesseract Group Oy provides the interest account service, and they manage the funds in the interest account.

5. What about funds other than those in the interest account?

Customer funds in Coinmotion’s own custody are 100% safe.

Coinmotion operates under the supervision of the FIN-FSA as a Payment Institution and Virtual Asset Service Provider. Current legislation defines how the service providers under the supervision of the FIN-FSA must store customer funds. Regarding cryptocurrency assets, about 98% of Coinmotion’s managed crypto assets are in cold wallets and the rest in the company’s hot wallets. We have accurately described the operational logic of our service and customer asset management to the Financial Supervisory Authority. In addition to these, the customer funds held by Coinmotion are recorded in the annual financial statements.

The auditor also checks annually at the wallet level that Coinmotion’s customer funds exist. In addition, in the near future, for the sake of transparency, we will commission an additional Proof-of-Reserves audit of customer funds. We will share additional information about this as soon as it is available.

6. When will the customer get the funds in the interest account back?

Tesseract Group Oy’s interest account service has been suspended. Customers can make a withdrawal request from the interest account using the withdrawal form in Coinmotion (in the Coinmotion platform go to “Services” -> “Savings” -> “Interest account” -> “Make a withdrawal request from the interest account”). The withdrawal requests are sent to Tesseract that is responsible for processing the withdrawals. Terms of use of the interest account define a 30-day withdrawal period.

Unfinished, i.e. unprocessed interest account deposits are returned to the customers by Coinmotion.

7. How can Premium interest account customers withdraw funds?

Individuals with a Premium Interest account have their normal rights according to the terms of the contract. In addition, we will personally contact people with a Premium interest account in the coming days for the withdrawal process.

If you have any questions or require assistance, please contact Coinmotion support via the support function on our platform.