Chocolate Finance Updates on Withdrawal Requests
Redemptions Processing Update
Chocolate Finance has processed and paid out the majority of the withdrawal requests made on March 10 and 11, after it received an "unusually high" number of withdrawal requests, the financial services platform said in an update on Monday (March 17).
Temporary Suspension of Instant Withdrawals
The company temporarily suspended instant withdrawals on March 10 due to "high demand". This was after a notice on its mobile app about an unusually high volume of withdrawal requests went viral among the online community.
Redemptions Processing Timeline
As of March 17, about 90% of the redemption requests received on March 10, and 73% of the ones received on March 11, have been processed and paid out. The remaining redemptions from March 10 are scheduled to be completed by March 18, while those from March 11 are expected to be completed over the next two days.
Redemptions Processing Timeframe
Redemptions are processed in accordance with the "standard three to six business days’ processing time". Requests received on or after March 12 are being processed "in an orderly and systematic manner" and are expected to be completed within the same timeframe.
Company Statement
"Chocolate Finance appreciates its customers’ patience and remains focused on delivering a secure and rewarding financial experience," the company said.
Monetary Authority of Singapore’s Statement
The Monetary Authority of Singapore reiterated in a statement on Monday that it continues to engage the company to ensure that customer withdrawals are met in an orderly fashion.
Conclusion
Chocolate Finance’s decision to temporarily suspend instant withdrawals and its subsequent processing of withdrawal requests have raised concerns among investors about the company’s liquidity. However, the company has assured that liquidity issues were not the reason for the suspension, but rather a "matter of managing increased transaction volumes".
Frequently Asked Questions
Q: What is the current status of withdrawal requests made on March 10 and 11?
A: As of March 17, about 90% of the redemption requests received on March 10, and 73% of the ones received on March 11, have been processed and paid out.
Q: When can I expect my redemption request to be processed?
A: Redemptions are processed in accordance with the "standard three to six business days’ processing time". Requests received on or after March 12 are being processed "in an orderly and systematic manner" and are expected to be completed within the same timeframe.
Q: Why did Chocolate Finance suspend instant withdrawals?
A: The company suspended instant withdrawals due to "high demand" and an "unusually high" number of withdrawal requests.
Q: Is there a limit to the amount I can withdraw?
A: Before the suspension, customers could request for instant withdrawals of up to S$20,000 a day.
