Holders of the AEUR stablecoin, issued by Anchored Coins AG, are facing potential losses due to the recent bankruptcy of FlowBank SA, one of the financial institutions responsible for guaranteeing AEUR’s 1:1 peg to the Euro.

The Swiss Financial Market Supervisory Authority (FINMA) initiated bankruptcy proceedings against FlowBank SA on June 13, 2024, after it was revealed that the bank was severely undercapitalized and potentially over-indebted.

As a result, the collateral FlowBank SA holds to back AEUR tokens may be at risk, leaving AEUR holders in a precarious position.