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I took out a cash loan fully backed by my Bitcoin holdings with Unchained Capital in 2021 when I was a Hawaiian resident, with the understanding that I would be eligible for a renewal loan at a later date. I was told by the company that they could open a bitcoin-backed cash loan for my company, but not as an individual. After the loan was open, the Bitcoin market experienced a significant drop, causing the value of my collateral to decrease temporarily. Despite the repeated assurance by phone and online messages of a renewal loan as an option right before the loan matured, Unchained Capital denied my renewal opportunity days before the maturity date by email, even though my loan was more than adequately collateralized, when the Bitcoin price was at its lowest point in recent history, leaving me in a precarious position.
As a result of this denial, I was forced into liquidation, and I tragically lost half of my valuable Bitcoin holdings, even though I had enough bitcoin to back another loan of the same cash value. They used high pressure to force me to tell them to take immediate action because the loan was in delinquent on the day I normally made my monthly interest payment. Without confirming with me, they also sent a XXXX demand letter to my previous address in Hawaii despite the fact that I was living in the state of Washington. My previous landlord got the letter and opened it and my former neighbors all learnt that I was a loan delinquent and they speculated that was probably the reason that I left Hawaii because I must have been broke. Indeed, the loss of a significant portion of my bitcoin holding has had a severe impact on my financial stability and long-term plans. I expected better treatment from a reputable company like Unchained Capital, especially considering our previous positive interactions.
To make matters worse, I have recently received an offer from Unchained Capital for a similar loan again, now that the Bitcoin market is showing signs of improvement. This raises serious concerns about the ethical nature of the company 's predatory lending practices. It appears that Unchained Capital is capitalizing on fluctuations in the market to the detriment of its customers, myself included.
I strongly believe that this lending practice is not only highly unethical but could potentially be in violation of relevant regulations and laws governing financial services.
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