This is the official statement from Choice Bank
Quote:
Dear Accountholder,
Due to recent developments involving the prepaid card component of our international banking business, Choice Bank Ltd. (“the Bank”) has been forced into a temporary liquidity constrained position.
With a view to enable the Bank to manage cash flows in an orderly fashion to work through the current liquidity situation, in the interest of depositors and other creditors as a whole, the Bank has taken the decision in its view as a matter of necessity, with immediate effect, to temporarily suspend all withdrawals from deposit accounts with the Bank and other outbound payment activities (save for payment of employees, suppliers essential for core operations, consultants and advisers) until the Bank and/or its relevant regulatory authorities (as the case may be) are satisfied that such suspension is no longer required.
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Wonder what 'recent developments involving the prepaid card component' means, did their prepaid cards get hacked or something?
How could a
prepaid card component make a 100 million dollar bank illiquid? That must mean people took out more than was in the accounts? But since it's prepaid that shouldn't be possible...