Altura’s efforts to complete the last round of redemptions from its stablecoin vault have hit a snag after a bank temporarily froze the account holding over £16.4 million meant for user payouts. The DeFi yield protocol announced that this restriction is out of its hands and is delaying the closeout process that began after a surge in redemptions back in June.
The funds were on their way to an over-the-counter partner to be swapped into USDT for distribution to users when the bank placed a hold on the account. Altura shared screenshots on X showing the bank is conducting an internal review and has asked the team to wait until it finishes.
Months-long wind-down interrupted
This freeze arrives at the very end of a gradual shutdown triggered by a redemption rush earlier this summer. Altura emphasized it was never exposed to the msUSD depeg incident that shook several yield-bearing stablecoins. The protocol had been steadily unwinding its treasury since June and was ready for the final payout step before the bank’s intervention.
This delay could stretch the timeline of final user redemptions, leaving over £16 million locked while the bank completes its review. Altura’s statement made clear there are no immediate actions it can take to resolve the freeze, heightening uncertainty among holders awaiting withdrawals.
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