MyStonks Faces $6.2M Withdrawal Issue Amid Delays

MyStonks, a crypto social investing platform, has paused $6.2 million in withdrawals, effective August 13, 2025, citing unexpected block congestion in their system.

Evelyn Zhang Addresses the Issue

Evelyn Zhang, CEO of MyStonks, addressed the withdrawal delays on Twitter, stating the team is investigating and pledged a detailed post-mortem report. Raj Bhatt, CTO, confirmed in a Telegram announcement that withdrawals were paused as a security measure but insisted user funds remain intact.

“We are aware of the withdrawal delays impacting some users. The team is investigating the on-chain flow mismatches and will publish a full post-mortem as soon as possible.” — Evelyn Zhang, CEO, MyStonks

Impact on ERC-20 Tokens and Market Reaction

The incident affects ERC-20 tokens, predominantly stablecoins. Etherscan data reveals halted outflows since 13:27 UTC and $6.2M in pending withdrawal requests. Total Value Locked (TVL) dropped significantly within hours, affecting users’ trust.

Potential Repercussions and Future Outlook

Concerns arise over potential financial repercussions, with comparisons made to past incidents like dYdX’s 2024 node sync bug. Crypto leaders suggest improvements in blockchain infrastructures and reserve verification to bolster security.

Halted withdrawals might provoke regulatory review or technological advancements in crypto security protocols. As the situation unfolds, stakeholders await further updates, particularly from Pantera Capital and other investors who have yet to comment on events affecting their portfolios.